Reeves’s promise of pub business rates U-turn averts Labour rebellion

The Harp in central London. The pub industry has been putting pressure on ministers to act. Photograph: David Noton Photography/Alamy

Rachel Reeves has avoided another damaging rebellion against her economic policies with the promise of a U-turn on controversial tax hikes for pubs in England, after weeks of protest from her colleagues and the hospitality industry.

Government sources said on Thursday the chancellor was finalising a support package for the struggling industry that would include reductions to business rates for pubs, which had been facing a 76% rise on average over the next three years.