High street businesses have called on the Government to expand business rate relief plans beyond pubs following reports of an impending U-turn.
The Treasury is understood to be preparing a support package for the pub industry, due to be announced in the coming days, following an outcry over the impact of a major hike in rates.
But ministers now face pressure to expand that support to other businesses, with trade bodies saying “piecemeal responses” will not “save our high streets”.
Opposition politicians have also urged the Government to go further.
Our response to the reports that Government will make an announcement on business rates for pubs pic.twitter.com/QnqO7acJbr
— British Beer & Pub Association (@beerandpub) January 8, 2026
Kate Nicholls, chairwoman of UKHospitality, called for “a hospitality-wide solution”, saying the entire industry is affected by business rate hikes, not just pubs.
Figures provided by UKHospitality suggest hotels in England face an average increase in business rates of 115% by 2030, compared with a 76% increase for pubs.
Jon Collins, chief executive of music venue body LIVE, said: “If the Government is preparing a U-turn on business rates for pubs, it must not leave live events and arenas behind.”
The National Pharmacy Association called for similar support for pharmacies, which chief executive Henry Gregg said face a 140% increase in rates.
He said: “We’re urging the Government to exempt pharmacy businesses from business rates altogether, in the same way as GPs are.”
The rise in rates is due to a combination of properties being revalued and the withdrawal of Covid-era discounts announced by Chancellor Rachel Reeves in November.
Ministers had put in place a £4.3 billion fund to help pubs with the transition to higher rates, but sources said Ms Reeves would soon announce additional support including further business rates relief and measures to cut licensing red tape.
The Chancellor is understood to have commissioned work on providing more support for pubs before Christmas, after the budget’s impact on individual sectors began to become clear in Government analysis.
Treasury minister Dan Tomlinson has been leading the work over the last few weeks, which has involved close discussion with the pubs sector.
Ros Morgan, chief executive of the Heart of London Business Alliance, said the expected U-turn was a welcome recognition that November’s budget was “untenable”.
But she added that a “temporary sticking plaster solution aimed at just one sector” was not enough and called for “fundamental reform” of business rates.
She said: “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.”
The pub industry itself tentatively welcomed reports of a U-turn, saying it was “potentially a huge win for pubs across the country”.
Emma McClarkin, chief executive of the British Beer and Pub Association, said publicans “can breathe a huge sigh of relief” and added her organisation would “keenly await” details of the relief on offer.
The Liberal Democrats called for ministers to come forward with proposals “today” in order to provide “clarity” and prevent pubs going bust.
Conservative leader Kemi Badenoch criticised the U-turn as “too little too late” and accused Labour of “killing Britain’s pubs”.
Shadow chancellor Sir Mel Stride urged broader changes, saying: “The problem is far bigger than pubs. Businesses right across Britain are at breaking point because of Rachel Reeves’ choices.
“Reeves must now go further and give the rest of the retail, hospitality and leisure sector the support they need.”
Reform UK welcomed the move, with deputy leader Richard Tice saying pub closures would be “a cultural catastrophe as much as an economic one”.
“Now what will the Chancellor do to help about the rest of the hospitality sector?” he said.
