A new “pubs tax” will force mass closures of family-run venues, Rachel Reeves has been warned, amid growing Labour MP fears that the Government has “gone to war” with their local.

The Chancellor is facing a looming backlash over changes to business rates in last month’s Budget , which she claimed would lead to permanently lower levies for hospitality premises, such as pubs , restaurants and cafes.

But MPs and campaign groups have warned the measures developed by the Treasury will have the opposite effect, and force businesses to put up prices, cut staff and close their doors.

Nearly 5,000 of the country’s smallest pubs are now subject to business rates , with the British Beer and Pub Association (BPPA) warning this could put them under severe financial strain .

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