High Street shops, pharmacies, and music venues are urging Chancellor Rachel Reeves to extend any planned relief from looming business rates increases beyond just pubs. The call comes as the government is expected to announce a backtrack on rises to business rates bills for pubs in England in the coming days, following fierce criticism from landlords and pub owners, with over 1,000 pubs banning Labour MPs from their premises in protest.

Other lobby groups and backbench MPs are now arguing that many other types of businesses will struggle to pay the higher costs. Business rates are set to increase sharply over the next three years as Covid-era support is phased out and property values are adjusted to reflect a return to normal business operations. The exact percentage increase in business rates varies depending on the property's rateable value, but industry analysts predict an average increase of around 6.7% in April, potentially adding thousands of pounds to annual bills for many businesses.

Anna Turley, chair of the Labour Party, stated on the BBC's Today programme that the government would remain open to discussions 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 current system of business rates is based on the rateable value of a property, which is an estimate of its open market rental value. These valuations are typically updated every three to five years, and the upcoming adjustments reflect changes in property values since the last valuation. The phasing out of Covid-era support, such as business rates holidays and reduced VAT rates, is also contributing to the increased financial pressure on businesses.

The potential impact of these rate increases on the retail sector, already facing challenges from online competition and rising operating costs, is a major concern. Pharmacies, which play a crucial role in providing healthcare services, are also highlighting the strain that higher business rates could place on their ability to serve communities. Music venues, still recovering from the pandemic, argue that increased rates could threaten their viability and cultural contribution.

The government has yet to officially announce the details of any potential backtrack on pub business rates, or whether any relief will be extended to other sectors. The Chancellor's upcoming Autumn Statement is expected to provide further clarity on the government's plans for business rates and other measures to support businesses.