The move is part of a one-year support package aimed at easing rising costs for some 4,400 businesses in the hospitality sector.
It comes after similar measures were introduced in England, including a 15% business rates discount from April, with rates frozen for a further two years.
Speaking in the Welsh Parliament following the announcement yesterday (3 February), Morgan said the relief would apply for the 2026-27 financial year.
During his address to the Senedd, Morgan also urged consumers to back high street businesses rather than relying on online shopping and streaming services.
Significant difference
Trade bodies welcomed the relief but warned it does not go far enough.
UKHospitality Cymru cautioned business rates bills would still rise in April despite the discount.
Executive director David Chapman said: “The additional 15% relief is helpful to some but it’s notable that this is only a one-year commitment, which is a significant difference to the three years committed to in England.
“Rates bills will still be going up year-on-year, even for those receiving relief, and hotels, which were facing the biggest increases, have been excluded completely.”
Chapman added the inclusion of restaurants and cafes alongside pubs was “clear recognition” that business rates are a “hospitality-wide problem”.
“We need a swift end to this unjust system, which challenges business viability, investment and growth. Hospitality still needs to see proper business rates reform and action to reduce the cost of doing business”, he continued.
Unfair rates
Meanwhile, Welsh Beer & Pub Association CEO Emma McClarkin said the support would not reverse the damage caused by previous policies.
She continued: “Wales chose to exclude pubs from their lower multiplier given to retail properties only, their transitional relief is much less generous, and the 15% relief only applies for one year.
“All this means a pub of the same size will pay almost twice as much in Wales as in England and leave publicans shocked and regulars no doubt questioning how much the Welsh Government values pubs.”
There were also warnings of further closures without long-term support from the Campaign for Real Ale (CAMRA).
CAMRA Wales director Chris Charters said: “15% off for a year is only the start of supporting pubs with business rates. It won’t fix the unfair business rates system our pubs are being crushed by.
“Welsh publicans need a permanent solution, or doors will continue to close and communities will be shut away from these essential social hubs that help tackle loneliness and isolation.”
