Up to 18,000 smaller pubs will see their business rates bill cut by £1,000 under a new relief policy to be introduced in April.
Chancellor Sajid Javid announced the policy this weekend, confirming the relief would be added to extended retail discounts, which also apply to smaller pubs.
UKHospitality has welcomed the move, but stressed that relief is needed across the board. Kate Nicholls, CEO, said: "This is fantastic news for pubs and other high-street businesses who are taking too much of the pain from business taxes. The economy has evolved and the tax system needs to catch up. Taxing property higher than the rest of the developed world is a recipe for the decimation of our high-streets and communities, which we have already started to see.
"At the budget in March we need to see drastic action to cut the cost of running a business regardless of size. Costs are on the rise, particularly with the planned 6.2% increase in the National Living Wage in April. We will be proposing a range of measures, including further cuts in business rates for all hospitality businesses and a cut in employment taxes to support firms in delivering higher take-home pay."
Community pubs minister Luke Hall said: "Pubs are front and centre of communities around the country, the key to thousands of jobs and providing a meeting point for local residents to get together and enjoy a pint.
"Today's business rates cut continues our firm commitment to support pub owners, helping to keep the pints pouring and the locals happy."