A planned removal of a business rate relief scheme in the Welsh Government’s budget for 2026/27 “will sound the death knell for more pubs” and be a “disaster” for the hospitality sector in Wales.

The Welsh Government released its final budget this week, with measures including the removal of the 40 per cent Retail, Hospitality and Leisure Relief first introduced during the Covid pandemic.

The removal of the relief mean businesses are facing an immediate business rate hike from April.

The Welsh Government has outlined a £116m package of support for businesses over two years to help with the impact of the 2026 non-domestic rates revaluation, which could send rates even higher.

CAMRA Chairman Ash Corbett-Collins said: “Slashing support for pubs and hiking business rates bills is totally disastrous and will sound the death knell for more Welsh pubs.

“The Welsh Government are repeating the mistakes of their colleagues in Westminster by axing the 40 per cent discount pubs get on their business rates at the very time those bills are set to rise due to a revaluation.

“Transitional reliefs may sound good but this Budget still means higher business rates bills than pubs are paying now.

“Our locals need permanently lower business rates bills so that they can survive, thrive and play their part bringing money into local economies and as vital community hubs.”

UKHospitality Cymru slammed the Welsh Budget as ‘disastrous’ for Welsh hospitality, with the sector being hit with a £122m hike to its business rates bills over three years.

The trade body said the continued exclusion of hospitality from business rates reform will accelerate high street decline, job cuts and business closures.

Its analysis reveals that, when compared to the current financial year, the sector’s business rates bill will increase by £29.4 million next year, £40.1 million in 2027/28 and £52.6 million in 2028/29.

The increases are driven by the removal of current business rates relief, hospitality being excluded from business rates reform and an inadequate package of transitional relief.

This is compounded by rateable values increasing by 23 per cent on average for the sector.

David Chapman, Executive Director of UKHospitality Cymru, said: “This Budget is disastrous for Welsh hospitality.

“The scale of these shattering increases will be unsustainable for many businesses and the decision to exclude hospitality from any support will only drive further job losses and businesses closures.

“Communities and their local hospitality venues will be the ones bearing the brunt of an unjust system that has long been broken, despite promises to reform it for the better.

“The system is in dire need of reform and the Welsh Government’s efforts barely touch the side of what is required.

“It is now vital that the Welsh Government commits to using, in full, any additional funds flowing from additional support in England to support hospitality businesses.

“All political parties seem to agree that hospitality is unfairly treated by the business rates system, yet still nothing happens.

“That must change.”