The Chancellor is set to unveil a £300 million support package for pubs after they warned budget tax changes could lead to mass closures, job cuts and price rises.
The Treasury is expected to announce the financial relief as soon as Tuesday, according to reports.
Pubs are expected to receive around £100 million a year until 2029 through additional financial support but the Chancellor has avoided more fundamental changes to business rates.
Other hospitality businesses, such as restaurants, cafes and hotels, are however expected to miss out despite also warning over soaring bills.
The Treasury’s planned intervention comes after an intensifying backlash from industry bosses and MPs over impending tax increases.
This has also seen dozens of Labour MPs, including the Chancellor, barred by pub landlords in response to November’s autumn budget.
In the budget, the Treasury announced changes to business rates which introduced a lower multiplier used to calculate the commercial property tax.
However, this was more than offset by the removal of a Covid-era 40% discount to business rates bills for hospitality, leisure and retail businesses, as well as new property valuations.
The Chancellor introduced transitional relief to manage increases to rates bills over the next three years after the removal of sector discounts.
However, industry bodies UKHospitality and the British Beer and Pub Association warned that pub business rates bills will still increase by an average of 15%, or £1,400, in April.
They said this will be an average rise of 76%, or £7,000, by the 2028/29 financial year.
Nevertheless, the support measures are likely to draw ire from other parts of the industry, such as hotels, where business rates bills are set to jump by an average of 115% a year, or £111,300, over the next three years.
Earlier this week, Revolution bars group The Revel Collective said they were filing to appoint administrators in the face of weak consumer confidence and higher costs.
A number of other hospitality groups, such as TGI Fridays UK and Leon, have also entered insolvency in recent months.
The Treasury has been contacted for comment.
