Rachel Reeves is set to U-turn on the business rates hike for pubs, according to reports. A package is expected to be announced in the coming days.

It comes amid mounting pressure on the Government to support the sector in the face of massive business rate hikes.

More support for struggling pubs could be forthcoming, a senior minister hinted as he insisted the Government values "the role of the pub in British life".

Ministers are facing growing Labour backbench concerns over the pub sector, amid the withdrawal of a Covid-era tax break announced at the budget.

Mr McFadden, who is known to be close with Prime Minister Sir Keir Starmer, insisted 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a revaluation which has pushed up bills, and some of the Covid support that was put in place a few years ago has been withdrawn.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."

The Government "saw that coming" and put in place a £4.3 billion transitional relief fund, the senior minister said.

He continued: "Now, since we did that, pubs, the trade association, pub owners themselves, have said that's not enough, you must understand our difficulties.

"We appreciate how important the pub industry is economically and culturally to the UK, so we'll keep talking to the pub industry. We really value the role of the pub in British life. We want to help pubs."

Pressed whether this meant the Government planned to U-turn on withdrawing the Covid-era tax breaks, Mr McFadden replied: "I'm not going to predict anything, but I do say to your listeners, we do appreciate the role of the pub in British life, it is something we value.

"Believe it or not, we're human beings as well as politicians, so we understand the role that pubs play."