Pubs, hotels, cinemas and other hospitality and leisure businesses across Wales are set to receive a permanent cut in business rates.

The Welsh Government says rates for eligible small and medium-sized businesses will be reduced by 30% from April 2027.

The change was announced by First Minister Rhun ap Iorwerth during a visit to a pub in South Wales.

He said the move was intended to help businesses survive and grow, while supporting the communities around them.

The reduction will apply to properties with a rateable value below £51,000 and will be funded by increasing the rates paid by businesses occupying some of the highest-value properties.

That includes some hotels and businesses operating from large sites, such as supermarkets.

The Welsh Government says the changes will not reduce the amount of funding available to local authorities, with business rates collected centrally before being redistributed to councils.

The announcement has been welcomed by the hospitality industry, although representatives say businesses are still facing significant costs.

UK Hospitality Cymru said the reduction would provide welcome support, but warned that businesses continued to face "massive amounts of taxation coming from all areas".

For businesses across North Wales, including pubs, restaurants, hotels and leisure venues, business rates are one of a number of pressures alongside energy costs, wages and other operating expenses.

The Welsh Government says the permanent reduction is designed to give smaller businesses greater certainty and help maintain the hospitality and leisure sector in communities across Wales.