RACHEL REEVES has dodged another backbench rebellion by announcing support package for pubs but the hospitality industry warned today that other businesses are being forgotten.

The Chancellor has promised a U-turn of crippling tax hikes for pubs following damaging protest by her Labour colleagues and pub landlords.

Pubs had faced a huge 76 per cent rise on average over the next three years after Ms Reeves announced that Covid-era reliefs would come to an end.

The Treasury is understood to be preparing a support package for the pub industry, due to be announced in the coming days.

But ministers are now facing pressure to expand it to other businesses, with trade bodies saying “piecemeal responses” will not “save our high streets.”

Kate Nicholls, chair of UKHospitality, called for “a hospitality-wide solution.”

She said: “The entire sector is affected by these business rates hikes — from pubs and hotels to restaurants and cafes.”

Figures provided by UKHospitality suggest that hotels in England face an average increase in business rates of 115 per cent by 2030.

The National Pharmacy Association called for similar support for pharmacies, which chief executive Henry Gregg said face a 140 per cent increase in rates.

He said: “We’re urging the government to exempt pharmacy businesses from business rates altogether, in the same way as GPs are.”

The pub industry tentatively welcomed reports of a U-turn, saying it was “potentially a huge win for pubs across the country.”

Emma McClarkin, chief executive of the British Beer and Pub Association, said publicans “can breathe a huge sigh of relief.”

She added that her organisation would “keenly await” details of the relief on offer.

Tonia Antoniazzi was among more than 30 Labour MPs preparing to vote in favour of an amendment to the Finance Bill on Monday that would have reduced rates for hospitality businesses.

She added that they would no longer push for the amendment but are prepared to rebel against Ms Reeves’s Finance Bill at a later stage if the new support proved insufficient.

Anna Turley, chair of the Labour Party, said: “The reality for now is that we want to support every small business, whatever sector they are in.”