With further reports of hospitality operators in North Wales at risk of closure due to Welsh Government policies, North Wales MS has called on the Welsh Government to “convene urgent talks with them to co-design practical support that keeps doors open and jobs local”.
Questioning the Cabinet Secretary for Economy, Energy and Planning today over action the Welsh Government is taking to support small businesses in North Wales, Mr Isherwood highlighted the difficulties a Wrexham hotelier is experiencing because of hikes in his rateable value, and said other hospitality businesses in North Wales are also struggling as a consequence of this.
Speaking in the Chamber, he said:
“A Wrexham hotelier, Steven Hesketh, was quoted in the media this month warning that the hospitality and hotelier sector is being, I quote, 'completely screwed' and set up to fail due to Government policies with his rateable value set to jump from £87,000 to £171,000 from April, effectively doubling.
“On an £80-per-night room, 20 per cent goes on value added tax, 20 per cent on commission to the booking website, 10 per cent on business rates, leaving less than £40 before covering costs, including utility bill increases averaging around 10 per cent.
“Llandudno operators report similar pressures, and UKHospitality Cymru estimates that Welsh rateable values have risen 26 per cent, adding £131 million to bills.
“Although the Welsh Government points to historic relief and a new package that staggers increases and lowers the multiplier, hospitality and leisure are excluded from parts of those reforms, risking redundancies and closures in local economies that depend on tourism.
“When, if ever, will you convene urgent talks with hospitality businesses and the hospitality industry, to co-design practical support that keeps doors open and jobs local?”
The Cabinet Secretary said:
“In response to understanding that this has been very difficult for some businesses, we're providing an additional £116 million of transitional relief over the next two years following the revaluation, which will take effect on 1 April. That's in addition to the permanent reliefs that I've talked about.
“I do recognise this is a really difficult time for many businesses, which is why we've put in the transitional support over the next two years, but also recognising that, overall, no additional money is raised as a result of revaluation.”
Speaking after the meeting, Mr Isherwood said:
“I have repeatedly highlighed in the Chamber the undue hardship our hospitality sector is facing due to Welsh Government policies, and, in the meantime we have regrettably had to watch businesses closing their doors, impacting livelihoods and the local visitor economy. Action can not come soon enough.”
