2. Questions to the Cabinet Secretary for Climate Change and Rural Affairs – in the Senedd at on 17 July 2024.
2. How is the Welsh Government working with UK Government partners to support the beer and pubs industry? OQ61466
Thank you, Jack. I'm really looking forward to working with the new UK Government when the opportunities arise to work in partnership to boost the beer and pub industries. This will include collaborating on implementing the deposit-return scheme in 2027.
I’m grateful to the Cabinet Secretary for that answer. I know that the Cabinet Secretary is passionate about the industry and his support for the cross-party group on beer and pubs has been instrumental throughout his time in post and previous posts as well. It’s great to see him in his parliamentary tie this afternoon as well.
Cabinet Secretary, I welcome your engagement with the industry. Through this, you will be aware of the concerns around the DRS and non-domestic rates. Will you again commit on the floor of the Senedd to engaging further with partners in the UK Government and the industry directly to ensure that we get the right solutions to these problems so that the beer and pubs industry can thrive in Cymru? Diolch.
I will indeed recommit to that, Jack. We need to bring forward a DRS that works, not only across the four nations, but respecting our position as well in Wales, that we have a desire to go forward with the all-in scheme, including glass as well. But we want to work with the sector to make that happen. We recognise the cruciality of the hospitality and retail sectors as part of our economy, so I’m committed to working with them.
I’m also committed, by the way, to working, as I said in my initial response to you, Jack, with other Governments right across the UK, including the new UK Government. I had, by the way, met with them in advance of the election in case, and we’d started exploring these issues. I spoke to Steve Reed, and this was mentioned on the agenda within 48 hours. I’m looking forward now with him and his team to getting into the detail of this, and our officials have started working together very closely as well. But we will work with the industry.
And I should say, Llywydd, just to note, on the tie, my membership previously, when I was a UK parliamentarian, of the all-party group—I’m pleased to wear the tie today—has been declared in my ministerial interests.
I always feel particularly excluded when men politicians start to discuss the tie that they're wearing. No scarves, no ties.
Diolch, Llywydd. I’m grateful to Jack Sargeant for raising this important question here today with the Cabinet Secretary. Cabinet Secretary, you talk about your work with the UK Government, and you know full well that the last UK Government—the Conservative Government—provided rate relief of 75 per cent to our pubs and hospitality industry in England and passed that money on to you, as the Welsh Government, to enable the same level of relief for our pubs here in Wales. You decided not to do that. Pubs here in Wales get 40 per cent rate relief, and therefore are at a competitive disadvantage compared to companies just over the border. So, if you’re really serious about supporting this industry, why don’t you just get that rate relief back up to 75 per cent?
Rate relief is one factor. I've got to say, Sam, that I’m pleased that we are still providing business rates relief for the sector, in fact, to the tune of an additional £78 million, to provide the fifth successive year of support with non-domestic rates bills. This does build on the almost £1 billion support provided through our retail, leisure and hospitality rates relief scheme since 2020-21. But that isn’t all of it either.
Hospitality businesses were also able to apply for the £20 million futureproofing fund from the Welsh Government, which ran for 2024-25, designed to help them futureproof their businesses. There’s financial support available as well from Visit Wales to those parts of the hospitality sector that form part of the tourism offer, such as high-end or destination restaurants. The Wales tourism investment fund puts money into the sector as well. And there’s more that I could go on with.
On the particular issue that you push at, I’m pleased that we are able to retain support through the rate relief scheme for the fifth year running, but there’s wider support that is also available to the sector, which reflects, I think, our commitment to it and our recognition of how much it contributes to the Welsh economy. And we’ll continue to work with the sector so that we can continue that support on an ongoing basis.