Chancellor Rachel Reeves has confirmed ministers are working on further temporary support for pubs facing rising business rates.
Speaking on BBC Breakfast, Ms Reeves said the Government is “working pretty intensely at the moment” to ensure additional assistance reaches struggling businesses, but stopped short of announcing cuts.
She said an announcement on the measures is expected soon.
Ms Reeves told viewers further details would be set out “in the next few days and weeks”.
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Her comments follow mounting concern from pub landlords over the financial impact of business rates increases due to take effect from April.
The hospitality sector has warned higher rates could force further closures across the country.
Ms Reeves said ministers are focused on ensuring the support package is properly targeted.
She said: “I want to make sure that we get this right.”
She said an announcement on the measures is expected soon
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The changes to business rates stem from several factors affecting pubs and hospitality firms, with commercial properties having undergone a revaluation for the first time since Covid.
The revaluation has resulted in higher rateable values for many premises.
At the same time, the Government is withdrawing temporary relief measures that were introduced during the pandemic.
Ms Reeves said the Government had already committed significant funding to ease the transition, noting an additional £4.3billion had been put in place.
The pub cited rising costs made the business 'unsustainable'
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Even so, she acknowledged that some pubs are still facing steep increases.
“We do recognise that for some pubs, there is still a big increase,” she said.
She also addressed criticism over the speed at which pandemic‑era support is being withdrawn.
With the emergency period now over, she said, temporary measures “do need to come away – but it’s about the speed at which you do that”.
The Chancellor stressed the changes do not take effect until April, giving ministers time to finalise further measures.
Ms Reeves said the Government must balance support for businesses with the need to keep public finances under control.
Borrowing, she argued, remains too high and must be reduced over the course of this Parliament — a stance she said has helped bring inflation and interest rates down.
Presenter Jon Kay said businesses want concrete assurances sooner rather than later
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Industry estimates suggest around six pubs are closing every day, with rising costs, weaker consumer spending and higher tax burdens all contributing.
The Plow Inn in Snaith, East Yorkshire, confirmed its closure this week, citing sharply rising business rates and a disappointing Christmas trading period.
Ms Reeves said closures are always distressing for local communities.
“It is always sad when a business closes, especially a much‑loved local business,” she said.
She added that ministers understand the concerns raised by publicans and are engaging closely with the hospitality sector, with particular attention on the pressures facing pubs.
She reiterated there is still time to put additional support in place before April, and said discussions with industry representatives are ongoing to ensure help reaches those who need it most.
The Government has previously said it wants pubs to thrive as community hubs, but business groups continue to call for long‑term reform of the business rates system.
Many pubs argue the current model fails to reflect modern trading conditions, and industry bodies warn that without intervention, closures are likely to continue.
Ms Reeves said the Government recognises the importance of pubs to local economies and is committed to finding solutions that support viable businesses.
Further details, she added, will be confirmed once discussions are complete.
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