New Welsh First Minister aims to support hospitality

By Oliver Catchpole

Published: 13 May, 2026

Rhun ap Iorwerth, the new First Minister of Wales, has “repeatedly outlined” his belief in hospitality, according to UK Hospitality (UKH) Cymru.

His party, Plaid Cymru – now the biggest in Wales and just six shy of a majority – has committed in its manifesto to business tax cuts for the sector.

Plaid wants to cut business rates in town centres with the aim of regenerating retail and hospitality businesses on the high street, “while ensuring that out-of-town retailers pay their fair share”.

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Ap Iorwerth was sworn in as the head of the Welsh government yesterday (12 May) after the recent Senedd elections, ending over a century of Labour dominance in the country.

Criticising Labour’s business rates policy back in February, he said: “It’s clear that the business rates system in Wales is fundamentally broken and that the hospitality sector is facing an existential crisis.

“A Plaid Cymru government would utilise the business rates multiplier to tip the scales in favour of smaller businesses by designing a tax system that is firmly on the side of SMEs.”

The party is also committed to the creation of a new, business-led National Development Agency for Wales (held “at arms-length” from government), which will aim to support the growth of SMEs and help businesses secure investments, trade and innovate.

According to UKH Cymru, Hospitality is the second-largest employer in Wales, with 165,000 people working in the industry (11% of Welsh jobs).

The trade body also said the industry represents around 5% of the economy, generating £5 billion in economic activity and £1.5 billion in tax.

Commenting on the election, David Chapman, executive director of UKH Cymru, said: “It’s clear the new First Minister understands the power of hospitality to drive growth, create jobs and support Welsh communities.

“He understands that our local pubs, restaurants and hotels, to name a few, are a vital part of our Welsh identity and culture, but that they have been overwhelmed with cost and red tape.

“I’ve been pleased to work with the First Minister and Plaid Cymru in opposition and was delighted at its commitments to reduce our sector’s tax burden, particularly when it comes to business rates.

“I hope actions to unshackle the potential of hospitality will be one of the first acts of this new Welsh Government.”

UKH Cymru has called on the new Welsh government to reform or replace business rates to achieve a permanent, lower rate for the hospitality sector.

The trade body pointed to its ‘manifesto for growth’, which also suggests infrastructural improvements, a new Tourism and Hospitality Governmental Review, and measures to encourage and support upskilling for those who work in the industry.

Plaid’s manifesto looks to address similar concerns, promising to deliver improved transport services and infrastructure; promote tourism; and undertake a national skills audit, as the basis of a strategy for workforce development.

The party is also committed to introducing the Welsh Deposit Return Scheme (DRS) with glass when it “becomes practically feasible”, something which the WSTA has called costly and ineffective, as Harpers reported.

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