Ministers to U-turn on pub business rates

Ministers are to U-turn on increasing business rates for pubs in the face of mounting pressure from landlords and backbench MPs, the Press Association understands.

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Pubs have been facing the prospect of much higher business rates after the Chancellor announced plans to end covid-era discounts in her budget in November.

The government had put in place a £4.3bn fund to help pubs with the transition to higher rates, but PA understands more assistance will now be made available after an outcry from the industry.

Sources said Rachel Reeves would announce a package of support in the coming days, likely to include business rates relief and measures to cut licensing red tape. Ms Reeves 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.