High street firms urge Rachel Reeves to widen tax relief - with 150 closures expected in 2026

Industry figures have warned that limiting help to pubs alone will fail to address the wider pressures facing town centres.

The calls follow indications that the Treasury is preparing to unveil additional measures aimed at easing the burden on pubs.

The anticipated intervention comes after sustained criticism of the business rate increases set out in Chancellor Rachel Reeves’s November budget.

Business groups argue that targeting a single sector leaves many others exposed to sharp cost increases.

They have warned that selective relief will not prevent closures across high streets.

Several trade bodies said piecemeal measures would be insufficient to stabilise struggling local economies.

Figures published by UKHospitality highlight the scale of the challenge facing different sectors.

The trade body said hotels in England are forecast to see business rates rise by an average of 115 per cent by 2030.

Pubs are expected to face an average increase of 76 per cent over the same period.

Pharmacies could see even larger rises.

The National Pharmacy Association said its members face average business rate increases of up to 140 per cent.

The increases follow changes to property valuations and the removal of Covid-era discounts.

Those measures were confirmed by the Chancellor in the November budget.

Business leaders say the combined impact risks accelerating closures on the high street.

Ros Morgan, chief executive at the Heart of London Business Alliance, said any U-turn would reflect recognition that the budget was flawed.

Ms Morgan said a limited response would not go far enough.

"This is recognition that the budget was untenable, but a temporary sticking plaster solution aimed at just one sector is not what high streets need."

Kate Nicholls, chairwoman at UKHospitality, said rate rises are affecting the whole hospitality industry.

"We need a hospitality-wide solution rather than action focused only on pubs."

She said restaurants, hotels and leisure venues were all facing the same pressures, warning that the strain was now being felt right across the visitor economy.

Live music venues have also cautioned that they risk being overlooked as ministers consider changes.

Jon Collins, chief executive at LIVE, said that “if the Government is preparing a U-turn on business rates for pubs, it must not leave live events and arenas behind,” arguing that the sector cannot be treated as an afterthought.

Pharmacies, meanwhile, have urged ministers to go further.

The National Pharmacy Association has called for pharmacies to be exempt from business rates altogether, with its chief executive Henry Gregg comparing their role to that of GP surgeries.

“We are urging the Government to exempt pharmacy businesses from business rates altogether, in the same way as GPs are,” Mr Gregg said.

Ministers have previously announced a £4.3billion fund to help pubs adjust to higher rates, but industry sources say the Chancellor is expected to confirm further relief measures.

These could include additional business rate discounts and changes to licensing rules, though details remain unclear.

Businesses outside the pub sector insist the proposals must be broadened, arguing that town centres rely on a mix of retail, hospitality and cultural venues to survive.

Opposition politicians have also weighed in ahead of the expected announcement.

Shadow chancellor Sir Mel Stride said the issue extended far beyond pubs, warning that “the problem is far bigger than pubs.

Businesses right across Britain are at breaking point because of Rachel Reeves’ choices.” He said a much wider range of sectors now needed support.

Conservative leader Kemi Badenoch criticised the expected measures, describing the reported plans as “too little too late” and accusing Labour of “killing Britain’s pubs.”

The Liberal Democrats have also called on ministers to act quickly, saying clarity is urgently needed to prevent further closures.

Reform UK deputy leader Richard Tice warned about the wider impact of pub closures, arguing that the loss of pubs would be damaging socially as well as economically.

He questioned what support would be offered to the rest of the hospitality sector.

Businesses across the country are now awaiting confirmation of the Government’s plans, with industry groups saying any announcement must recognise the scale of the pressures facing the high street.