On Budget day, many MPs were quick to celebrate the Chancellor’s announcement of “permanently lower tax rates for retail, hospitality and leisure properties”. That praise was premature. With other tax rises taking place, the announcement seemed too good to be true.

In reality, there was much more to it than first appeared. New rateable property values coming into force in April, a much smaller-than-expected reduction in the business rates multiplier, and the phasing out of business rates relief together mean significant increases for many businesses.

In East Hampshire there are more than 70 pubs, as well as many cafés and restaurants. These are not only important employers but vital community assets.

UK Hospitality, the industry body, has warned that nationally as many as six hospitality venues a day could close in 2026 unless the government acts to rein in the planned increases.

Here in East Hampshire, the average hospitality business faces a projected increase in business rates of more than £13,000 over the next three years. Many are already struggling with rising costs, including higher employer National Insurance contributions and energy bills.

The impact of the new Employment Rights Act is also approaching. This will add further cost and complexity, particularly for seasonal or variable-demand businesses, including many in hospitality.

We were told this week that the Chancellor had not fully understood the impact her changes to business rates would have. Yet two days later, the Valuation Office Agency said the government did know that thousands of pubs would see their business rates double.

It is therefore hardly surprising that we have seen another government U-turn — which is welcome — although, at the time of writing, it remains unclear exactly what it will involve.

The government has spoken specifically about helping pubs, but what about the rest of the hospitality sector? Local hotels, live music venues, cafés and restaurants also face severe pressure.

There is another aspect of business rates that deserves attention. The government has introduced a new, higher multiplier band for the most expensive properties, presented as a way of making online giants pay more and “levelling the playing field” with the high street. What has not been made clear is that many other businesses will also be caught by this higher band.

These include suppliers to high street retailers, whose increased costs may simply be passed on, as well as hotels. I am also pressing ministers on the potential impact on parts of the public sector, including health and education, which may find themselves subject to the higher multiplier.

This may be a difficult moment for the government, but it is an extremely hard one for many businesses in the hospitality sector and beyond. The Chancellor must now set out clearly and urgently how she intends to mitigate the plan she has put forward.