The local government finance (Wales) act has become law and introduced specific measures in order to easily reform business rates. Hospitality trade body, UKHospitality has urged the Welsh Government to utilise these newly introduced influences in order to introduce a lower, permanent and universal multiplier applied to all Welsh businesses. Measures introduced include:
- Enabling changes to the calculation of payments for different categories of ratepayers.
- More flexibility to make changes to reliefs and also exemptions.
The new laws provide a new and potentially more adaptable framework for how the UK Government in Westminster could establish similar measures to introduce a lower multiplier for hospitality businesses throughout England in a more effective and also cost neutral way.
Pioneering move
UKHospitality (UKH) Cymru David Chapman said: “This is a pioneering move from the Welsh Government and clearly demonstrates that they have been listening to our concerns about the broken business rate system.”
Addressing hopes for the future, he continued: “With the law now changed, I hope the Welsh Government will immediately utilise it to implement a lower multiplier for hospitality. This would begin to fix a system that is stacked against bricks and mortar businesses, while also freeing up much-needed cash for hard-pressed venues.”
UKH chief executive Kate Nicholls also addressed the new opportunity. She said: “With a manifesto commitment to level the playing field between high street businesses and online giants, the UK Government can look towards its counterparts in Wales for a blueprint on how to begin that journey.”
She continued: “Hospitality businesses pay three times as much in business rates than they should do, and legislation like this that enables differential business rates is a practical way to address that imbalance.”
Unlocking investment
Addressing the business rates cliff in April, she stated venues could experience bills “quadrupling”, claiming there needs to be “urgent action at the Budget and a lower, permanent and universal multiplier for hospitality must be a central part of that.”
UKH executive director Scotland Leon Thompson also stated: “With the Scottish Government committed to reviewing business rates for hospitality, now is the perfect time to engage with the Welsh Government to learn about these changes.”
Touching on new potential growth for Scotland, he added: “Developing a fair business rates system for hospitality in Scotland is vital to unlocking investment, growth and employment opportunities.”
