Starmer and Reeves are clinging on for dear life as bloodbath about to hit British towns

Britain faces a "bloodbath" on the high street with the mass closure of pubs and businesses and thousands of jobs losses unless the crushing tax burden is lifted in this month's looming Budget, Chancellor Rachel Reeves has been warned. Leading figures in British business fear a new raid by Ms Reeves in the November 26 Budget could be the death blow for employers across the UK which have been pushed to the brink of closure by last year's tax hikes.

The British Beer and Pubs Association (BBPA) is braced for a surge in costs which it calculates could force more than 2,000 pubs to close with the loss of 12,000-plus jobs. Kate Nicholls, who chairs trade body UK Hospitality, warned this is a "make or break" moment for an industry where people are being "taxed out of business".

She said: "We've had 13 consecutive months of falling employment and 170,000 fewer people on payroll across the UK since last year's Budget - a shocking indictment of the damage caused by those measures."

Ms Nicholls warned two venues are closing a day with the sector "accounting for more than half of all job losses across the economy".

Emma McClarkin, the chief executive of the BBPA, has joined forces with some of the biggest names in hospitality and brewing and written to Ms Reeves to warn that the "end of business rates relief and next year's revaluation of commercial properties" are expected to push up rates bills by more than half.

There are also strong fears in retail that higher employment costs, a new wave of red tape and changes to business rates will also force shops to let workers go.

Andrew Goodacre, the chief executive of Bira, the British Independent Retailers Association, said: "Pre-election we were promised a fairer rates system and lower rates - since taking power rates have more than doubled for independents, and more increases [are] set to be announced. The costs of running a business keep increasing, whilst consumer spending remains flat - a toxic mix for any business."

He is particularly concerned that positions will go if mid-sized employers are left reeling by a hike in business rates.

"You could be looking at 10,000 jobs, I would think," he said.

Shadow Chancellor Sir Mel Stride said: "Britain's town centres are staring down a crisis. If soaring costs push thousands of pubs and shops to the wall, we won't just lose businesses - we'll lose jobs, community lifelines, and the heartbeat of our high streets.

"The Conservatives would abolish business rates for pubs and shops on our high streets because without urgent action the country risks a bloodbath - a wave of closures that will hollow out towns and damage local economies for years to come."

The Budget comes as the Government has been rocked by infighting and speculation the Prime Minister could face a leadership challenge. Senior Conservative and Reform UK figures claim this month could be the last time Sir Keir Starmer and Rachel Reeves get to preside over a Budget.

Reform UK deputy leader Richard Tice said: ""This will be Rachel Reeves's last Budget, of that I am convinced. And I actually think it will be Keir Starmer's last Budget as Prime Minister."

Tory chairman Kevin Hollinrake said: "Just days away from a Budget that will hike taxes and further undermine business confidence and investment, Starmer and Reeves are clinging on for dear life. If they refuse to heed the warnings of business groups and companies large and small about the damage their plans could cause on November 26, this may well be Starmer and Reeves' last Budget."

UK Hospitality's Ms Nicholls said: "If the Government wants to get people back into work and revitalise high streets, it needs hospitality firing on all cylinders, but right now we're being taxed out. We urgently need action and are calling on the Government to lower business rates through implementing the maximum possible discount for all hospitality properties and taking immediate action to smooth cliff edges and cap valuation increases.

"Anything less risks more closures, higher prices for consumers, and the loss of the vibrant hospitality that defines our communities and our capital. Hospitality is ready to drive growth and recovery, but we need the backing and support to do so."

The BBPA warns that tax, red tape and cost increases have "resulted in a fifth of Britain's pubs closing their doors forever" since 2010. It claims a third of hospitality businesses are making a loss and says Britain's beer duty is "12 times that of Germany and Spain".

Shevaun Haviland, director-general of the British Chambers of Commerce, described the damage to employment caused by the shock increase in National Insurance contributions (NICs) announced in last year's Budget.

He said: "Our research shows a third of firms have either made people redundant or are considering it due to the NICs increase. Their backs are against the wall.

"The answer to the Chancellor's problem is to use the Budget to support them to grow."

John Longworth, chairman of the Independent Business Network, said: "This Labour Government has been disastrous for the high street, hospitality, shops and pubs. The loss of rates relief, business taxes and the new employment laws are laying waste to our high streets and family businesses with a consequent loss of jobs.

"Once again Labour isn't working and I am not sure business can stand another three years of this government. The economy and our communities are in jeopardy."

Joanna Marchong of the Adam Smith Institute, said: "If the Government wants growth, the first step is obvious: slash the business rates burden and stop treating bricks-and-mortar firms as cash machines. The Autumn Budget must prioritise reform, or Britain will pay the price in boarded-up high streets and lost jobs."

Daniel Herring of the Centre for Policy Studies warned: "Businesses like pubs are being squeezed from every direction. It already costs £2,367 more to employ a full-time minimum wage worker than it did last year."

And Reform UK MP Lee Anderson said: "Labour's economic incompetence is driving thousands of British boozers into the ground, and with them tens of thousands of jobs. It will be no surprise if publicans up and down the country are already blacklisting Reeves and Starmer.

"If the Chancellor cared for British pubs - and the long tradition and culture that comes with them - she would ease the tax burden, cut energy costs, and incentivise business."

A Labour source hit back at the Conservative criticism, saying: "The party of Liz Truss crashed the economy and sent mortgages rocketing through the roof. With Keir's leadership, Labour is turning the tide, delivering growth and fairness for working people.

"That means reviving our high streets, bearing down on the cost of living, and creating hundreds of thousands of jobs across the country."

Labour pledged in its manifesto to "replace the business rates system, so we can raise the same revenue but in a fairer way". The Budget will be closely watched for details on how it plans to "level the playing field between the high street and online giants, better incentivise investment, tackle empty properties and support entrepreneurship".

A Government spokesperson said: "Pubs are vital to local communities, that's why we're cutting the cost of licensing, lowering their business rates and helping more hospitality businesses offer pavement drinks and al fresco dining, on top of cutting alcohol duty on draught pints and capping corporation tax."