Ministers are set to U-turn on a planned tax raid on pubs after mounting pressure from landlords and backbench MPs.
However hotels, nightclubs, music venues and other hospitality could still be hit by the business rates hikes and the withdrawal of Covid-era tax breaks announced in the Budget.
More than 30 MPs had told Chancellor Rachel Reeves that pubs are facing unprecedented challenges, and many could close when the new measures begin in April.
The Government had put in place a £4.3 billion fund to help pubs with the transition to higher rates, but more assistance will now be made available after an outcry from the industry.
Kate Nicholls, Chair of UKHospitality, said: “The entire hospitality sector is affected by these hikes - from pubs and hotels to restaurants and cafes.
“We need a hospitality-wide solution, which is why the government should implement the maximum possible 20p discount to the multiplier for all hospitality properties."
Sacha Lord, chair of the Night Time Industries Association, added: "This is a start, a small victory, but it does not go far enough. It must apply to all Hospitality! Small family run restaurants are closing in droves."
Bars, clubs, restaurants, hotels and music venues are among the businesses facing much higher bills as part of a series of tax rises announced by Ms Reeves in her Budget.
The damage is being done by a combination of large increases in rateable values – based on how much it would cost to rent the property annually - and the end of 40% relief put in place during the pandemic lockdowns.
The average tax bill for a pub will rise more than £11,000, or 37% from £30,375 to £41,560, according to calculations by the Pubs Advisory Service.
Estimates from the Night Time Industries Association revealed that a medium-sized restaurant with a rateable value of £60,000 will see its bill jump by around 50% from £17,280 to £25,800, while a major city centre nightclub will be hit by a 76% rise from £187,200 to £330,200.
Work and Pensions Secretary Pat McFadden hinted more support for pubs was on the horizon amid a growing Labour rebellion over the tax raid.
Mr McFadden insisted on Thursday morning that the Government values "the role of the pub in British life" and was "talking to the pub industry" about its worries.
Ros Morgan, chief executive of Heart of London Business Alliance (HOLBA), which represents over 500 businesses, said: “It's welcome that the Government appears to be recognising that the reforms of business rates announced at the last Budget are untenable.
"However, another temporary sticking plaster solution aimed at just one sector won't be enough. Time and again we've seen piecemeal responses like this, but they won't save our high streets. In addition to pubs, hotels, theatres, galleries and visitor attractions, as well as offices and gyms and many other types of business, are all facing steep increases in bills.
"Labour promised fundamental reform of the broken business rates system. We need to level the playing field between online businesses, who pay minimal rates, and high street ones which are taxed based on the rateable value of their property.
“That's why HOLBA and others are calling for a Hybrid Business Rate, with a small levy on online sales to enable a cut of a third in bills for bricks and mortar businesses.”
Shadow business and trade secretary Andrew Griffith said: “Just a month on and the Budget is already falling apart. Labour were wrong to attack pubs and now have been forced into another screeching U-turn.
“But this humiliating about-face appears to do nothing for shops, restaurants, hotels and markets which all face a more than 50% increase. With no detail provided, this is not the stability Rachel Reeves promised – it is a recipe for economic disaster.”
Prime Minister Sir Keir Starmer this week said he acknowledged that for pubs “the re-evaluation means that they will struggle in relation to the business rates applicable to them”.
Conservative leader Kemi Badenoch has vowed to scrap business rates for thousands of British pubs as she accused the Government of treating them "like cash cows to milk".
The Tory chief told The Telegraph her party has "identified billions of pounds of savings from things like bringing down the welfare bill and reducing the size of the Civil Service".
These savings would allow a future Conservative government to scrap business rates "entirely for thousands" of pubs, she said.
On Wednesday, a Labour MP urged the Prime Minister to review the Government's business rates proposals.
Speaking at Prime Minister's Questions, York Central MP Rachael Maskell argued that many businesses in her area will have to close as a spike in business rates looms.
Ms Maskell said: "In York, hospitality sees an average business rate rise of 41%, a music venue 44.4% and many independent shops increase around 27%.
"It will mean doors closing and trade ceasing, they just can't do it."
Sir Keir responded: "As she knows, during Covid, the rates went down and that was coming to an end, and that's why we put in place interim relief as we move to the new rates.
"We are continuing to work with and talk to the sector on that support and what further support and action we can take."
