Keir Starmer is poised for yet another U-turn amid rising fury over business rate hikes for pubs.

Ministers are scrambling to assemble a rescue package to ease the pressure on the hospitality sector, with an announcement expected within days.

The looming climbdown is the latest humiliation for the PM and Chancellor Rachel Reeves - who was said to be resisting any more concessions.

Pubs have been sounding the alarm about mass closures since Ms Reeves confirmed that Covid-era business rates relief is set to end in April. It had already been scaled back from 75 per cent to 40 per cent.

The same month will see the implementation of new rateable values for business properties, reflecting changes in the property market. Many pubs have been facing rates doubling. 

There have been rising demands from Labour MPs for a change, after many were banned from their locals as part of a campaign by incensed landlords.  

The looming climbdown is the latest humiliation for Keir Starmer and Chancellor Rachel Reeves - who was said to be resisting any more concessions

Pubs have been sounding the alarm since Ms Reeves confirmed that Covid-era business rates relief is set to end in April. It had already been scaled back from 75 per cent to 40 per cent

Industry body UK Hospitality warned that any concessions should not be limited to pubs  

Labour MPs also pushed for the government to go further than just pubs

Sir Keir had already hinted that pubs might be allowed to stay open longer to help them cope with the eye-watering extra costs.

But crucially it appears there will now be concessions on the way that their rates are calculated. 

The reforms are expected to be specifically for pubs, despite warnings that other hospitality businesses such as hotels are in the firing line. 

The Treasury has yet to finalise the package, with frantic work going on behind the scenes. 

But industry bodies and Labour MPs are still pushing for wider reliefs for affected businesses.   

Work and Pensions Secretary Pat McFadden said this morning that the Government was 'talking to the pub industry' about its worries.

He told BBC Radio 4's Today programme: 'Let me just explain to listeners there are three different things happening with pubs right now: the actual rates that are charged, those levels have been reduced, but at the same time there's been a revaluation which has pushed up bills, and some of the Covid support that was put in place a few years ago has been withdrawn.

'Left with no action from the Government, the combined effect of all of those three things would be a very steep increase in the bills for pubs.'