Pubs and restaurants warn of closures if taxes rise and business rates relief ends

Call came from the British Beer and Pub Association, the British Institute of Innkeeping and UKHospitality. Photograph: Dave Porter/Alamy

Pubs and restaurants are warning of closures and a tough Christmas ahead if Rachel Reeves’s budget this week raises taxes and ends a Covid-era relief on business rates.

Reeves is expected to reveal a tax-raising budget on Wednesday, to pay for improved public services, with Labour sources indicating the government is intending to raise taxes and cut spending by a combined £40bn. Businesses across the economy are bracing for higher taxes, which could dent consumer spending.