Welsh Finance Minister pushing UK Government to make 'VAT contribution'
It came after a pub landlord told the visiting minister it made up one of the biggest cost to the industry
Wales' Finance Minister has called on the UK Government to use its powers over VAT to provide more support to the hospitality sector.
Elin Jones was speaking during a visit to a Welsh pub, where the landlord welcomed the Welsh Government's 30% cut in business rates as "helpful", but told ministers that VAT remained a much bigger cost for his business.
The permanent cut in business rates will apply to eligible pubs, restaurants, cafés, hotels and leisure businesses from April 2027.
Ms Jones said there were "always issues that are not within the responsibility of the Welsh government", but added that Westminster could make "a very important contribution" to supporting pubs and hospitality.
"VAT is one of those," she said.
Ms Jones acknowledged the pub owner felt a reduction in VAT would make a "major impact" on his business.
"That's something that we will continually want to raise with the UK government in supporting small businesses," she said.
The Welsh Government says the business rates cut will help make high street businesses more viable.
First Minister Rhun ap Iorwerth said the policy would give businesses "the confidence to invest, grow and keep serving the communities that rely on them".
Ms Jones said the government wanted to be "business focused" and ensure decisions were made with businesses in mind. She added "We've heard the UK government, a new Prime Minister, say that he wants to be doing more to support local high streets and businesses, and hopefully, he'll be listening to a Pub Owner from Radyr as much as we are."
The 30% reduction will be funded through the business rates system, with larger businesses contributing more towards the cost.