High Street shops, pharmacies, and music venues are urging Chancellor Rachel Reeves to extend any forthcoming business rates relief, currently anticipated for pubs, to include their sectors as well. The call follows widespread criticism of impending rate hikes, with publicans protesting increases that could further strain their businesses.

The government is expected to announce a backtrack on rises to business rates bills faced by pubs in England in the coming days, after more than 1,000 pubs banning Labour MPs from their premises. However, other lobby groups and backbench MPs are advocating for a broader application of the relief, citing the unsustainable burden the increased costs would place on various businesses. Business rates are slated to increase significantly over the next three years as Covid-era support measures are phased out and property values are reassessed to reflect pre-pandemic business activity.

Anna Turley, chair of the Labour Party, stated on the BBC's Today programme that the government would maintain open communication with firms. "Where businesses are telling us they are struggling and they need more support it is absolutely right that the chancellor talks to them, engages with the sector and looks at what we can do to assist them," she said.

The existing system of business rates, a tax on non-domestic properties, is calculated based on the rateable value of a property. The increases are tied to the revaluation of properties, which reflects changes in rental values. For many businesses, this revaluation translates to a substantial increase in their tax liabilities, potentially impacting profitability and investment. The exact financial impact on individual businesses will vary depending on their location and property value.