UK Hospitality Cymru director David Chapman said the costs facing the sector made running a business similar to “plate spinning when you’re riding an exercise bike”.
Chapman added: “You have massive amounts of taxation coming from all areas. We have a VAT problem besides business rates. We also have high inflation in the industry over the last few years. Energy costs have been high. Labour costs have gone up incredibly, really, with the National Insurance changes.
“And so it’s been a very difficult job, a really difficult balancing act to keep going.”
That being said, Chapman was keen to welcome the cut in business rates and said it was “the beginnings of a change which I hope will permanently enable our businesses to look at growth and to look at further employment, and to start to plan ahead”.
The UK government, which is responsible for VAT and National Insurance, said the Chancellor prioritised support for the hospitality sector by cutting business rates by 20% for pubs, social clubs and live music venues in England during his first week in office.
A spokesperson said: “As business rates are devolved, the business rates cut also means extra funding for the Welsh government, which can choose how to allocate it.
“Our Great British Summer Savings also benefited businesses and families from across the country, including Wales.
“The scheme increased footfall for businesses in these sectors over the summer, getting more people through the door and boosting local economies”.
