Pubs, hotels, and gyms in Wales will see a 30% reduction in their business rates starting in April 2027, according to the Welsh government. This relief is aimed at small and medium-sized businesses with a rateable value of less than £51,000. The funding for this cut will come from an increase in the business rates paid by larger companies, such as big hotels and supermarkets, which have higher-value properties. The Welsh government has assured that this change will not reduce the overall funding available to local authorities. First Minister Rhun ap Iorwerth described the move as a way to help businesses grow, which he believes will lead to stronger communities. He said the change is part of the government’s effort to "rebalance the way business rates work" and make high streets more lively. This 30% cut replaces the current 15% temporary reduction in business rates for hospitality businesses, which has been in place to support the sector during the pandemic. Finance Minister Elin Jones explained that the increase in rates for larger businesses would be around 1p for every £1 they pay. She noted that it is fair for larger businesses, not just in the hospitality sector, to bear the additional burden. This approach aims to ensure that the relief for smaller businesses is funded without negatively impacting local government budgets. Industry representatives have welcomed the cut but remain concerned about the overall tax burden on businesses. UK Hospitality Cymru, a trade body, acknowledged the relief but warned that businesses still face significant taxation from various sources, including VAT and energy costs. A pub landlord, Phil Newbould, said the cut would save his two pubs around £3,000 a year but noted that more support is needed. Meanwhile, Oliver Banks, owner of a Cardiff café and wine bar, called the cut "fantastic," saying it gives the sector more flexibility in managing costs. In England, Prime Minister Andy Burnham announced a similar 20% cut in business rates for pubs, social clubs, and live music venues, also set to take effect in April 2027. The UK government, which handles taxes like VAT and National Insurance, said the move reflects the Chancellor’s focus on supporting the hospitality sector. A spokesperson noted that the Welsh government will also receive extra funding from this change, which it can use as it sees fit.