Reeves’s promise of pub business rates U-turn averts Labour rebellion

Change in England largely welcomed by industry and Labour MPs but represents another climbdown

Rachel Reeves has avoided another damaging rebellion against her economic policies with the promise of a U-turn on controversial tax hikes for pubs in England, after weeks of protest from her colleagues and the hospitality industry.

Government sources said on Thursday the chancellor was finalising a support package for the struggling industry that would include reductions to business rates for pubs, which had been facing a 76% rise on average over the next three years.