Shropshire Star

Frustrations as pubs and shops face tax rise to prop up NHS

Business owners in Wales have expressed their frustration over a planned tax rise to put more money into the country's struggling health service.

Published

The Welsh Government said it was forced to make "stark and painful" choices for its draft budget for next year, with health services and councils among the protected areas.

Business rate relief, brought in during the pandemic for the retail, hospitality and leisure sectors, will be reduced from 75 per cent to 40 per cent, meaning higher bills. The rate continues at 75 per cent in England.

But with the cost of beer and food at an all-time high, many in the hospitality sector have found the plan to be unwelcome news.

Jake Sampson from The Abermule Inn in Abermule, near Newtown said the reduction would be a "real pressure" on the business.

"It's going to be a struggle," he added. "Beer's going up, food's going up - it just adds even more on to that.

"I think we'll be okay. If it means the prices have to go up then the prices go up. We've got really good support here and I think our customers we'll stick by us. If they don't, that when it'll be an issue."

Anthony Rosser, managing director of Lake Vyrnwy Hotel in Llanwddyn said the decision was "incredibly disappointing".

He added: "At a time when all the external pressures on hospitality are growing, including the huge mandated wage rises, having this now is going to have a very serious detrimental impact on a significant number of businesses.

"We have a situation where the Welsh government is not giving the same amount of support as the English - especially for those close to the border, that's competitive businesses.

"It's only going to add to the significant pressures that all hospitality businesses are feeling at the moment."