High street shops, pharmacies, and music venues are urging Chancellor Rachel Reeves to extend a planned reversal of business rate increases beyond just pubs. The government is reportedly preparing to announce a backtrack on impending business rate hikes for pubs in England, following strong criticism from landlords and pub owners, including a protest where over 1,000 pubs banned Labour MPs.

However, lobby groups and backbench MPs are advocating for a broader relief package, arguing that many other businesses will struggle to afford the higher rates. The Chancellor's November Budget reduced business rate discounts, in place since the pandemic, from 75% to 40% and eliminated them entirely from April. This change, coupled with significant upward adjustments to the rateable values of pub premises, resulted in the prospect of substantially higher bills for landlords.

The BBC reported that the anticipated climbdown would only apply to pubs, excluding the wider hospitality sector. The British Independent Retailers Association (Bira), whose members include independent retailers, questioned the rationale behind excluding them from the relief. The association argued that these businesses also face significant financial pressures and contribute substantially to the economy.

The changes to business rates are expected to have a significant impact on businesses across England. The scaling back of discounts from 75% to 40% in November already placed a strain on many businesses, and the complete removal of discounts in April is projected to exacerbate the situation. For pubs, the combination of reduced discounts and increased rateable values could lead to a substantial increase in their business rates bills, potentially impacting their profitability and viability. The exact financial impact will vary depending on the specific circumstances of each business, including its rateable value and location.

The government has yet to officially announce the details of the business rates backtrack. The timing and scope of the announcement remain uncertain, but it is expected in the coming days. The decision on whether to extend the relief beyond pubs will likely depend on a number of factors, including the government's fiscal position and the political pressure from various lobby groups and backbench MPs.