A cross-party group of parliamentarians has warned of major job losses across the Welsh hospitality sector without immediate government support.
The MPs, coordinated by the chair of the All-Party Parliamentary Group (APPG), Llinos Medi MP, have written to the Chancellor ahead of the Autumn Budget, sounding the alarm over rising costs and their threat to thousands of jobs, as well as the swift decline of Welsh high streets.
The group, which includes Plaid Cymru's four MPs and two Peers, Labour MP for Gower Tonia Antoniazzi, and Conservative Shadow Parliamentary Under-Secretary of State for Wales Baroness Bloomfield, said the sector is facing a crisis.
Since the 2024 Budget, the trading environment has worsened significantly, with ONS data indicating 84,000 hospitality job losses across the UK between October 2024 and August 2025.
This number is projected to rise to 111,000 by the Budget day next week.
The APPG warned that job losses in Wales alone are now estimated to exceed those resulting from the closure of Port Talbot steelworks.
With the hospitality sector employing more than 165,000 people and contributing £4 billion to the Welsh economy, the MPs stressed that urgent intervention is necessary to prevent further economic and social damage.
The letter raised grave concerns about the Welsh Government's proposed new business rates relief scheme, which currently excludes hospitality and leisure.
Without intervention, businesses across Wales will be required to pay full business rates from April, a move MPs say will have "potentially crippling effects" on jobs and town centres.
The group is calling on the Chancellor to ensure Wales receives the funding needed to extend meaningful support.
They also urge the Chancellor to introduce additional measures in the Autumn Budget to safeguard the sector's future, including business rates reform, addressing the unsustainable costs of increased Employers National Insurance Contributions, and a cut in VAT on hospitality.
Chair of the APPG, Llinos Medi MP, said: "Hospitality businesses across Wales are facing immense challenges.
"Rising costs and high business rates are putting thousands of jobs at risk and adding further pressures on high streets that are already on the brink.
"This cross-party letter reflects a shared concern from across the political spectrum and across Wales.
"We see it in our communities every day, in cafés, pubs, restaurants, and venues that employ tens of thousands of people and are central to the life of our towns and villages, but are struggling to survive.
"We are asking the Chancellor to use this Budget to provide the support these businesses urgently need.
"Without action, we risk real damage to both jobs and the places that bring people together in Wales."
The MPs propose immediate measures to safeguard the industry, including business rates reform, addressing increased Employers National Insurance Contributions, and a cut in VAT on hospitality.
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