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Pubs and clubs have raised fears they will miss out after Andy Burnham announced targeted 20 per cent cut in business rates.
The new PM has continued his flurry of 'cost of living' announcements with the pledge to trim the charges.
The Government says the discount will apply to nearly 32,000 venues and will save a typical pub £1,100 annually.
But the reductions will not take effect until next April, and owners pointed out it does not wipe out the 150 per cent hikes some suffered from Labour's revaluation last year.
Other venues raised concerns they will not be covered because they serve food, while restaurants and hotels are not set to get any help. Experts suggested some businesses would start pretending to be pubs in a bid to exploit the relief.
The Government is also mired in another row over how it will pay for the £100million move. Ministers have suggested money will come from a crackdown on reliefs for vaping shops and other business that do not make a 'positive contribution' to communities.
However, there is no detail, and no mention of Mr Burnham's previous commitment to bring in funding by taxing out-of-town warehouses operated by firms such as Amazon.
Mr Burnham said: 'This government will back the businesses that people want to see in their communities.
'I said I would protect pubs and local high streets - the beating heart of our communities - and that's what we will do.
'What we're announcing today is just the start as we work to bring back hope across the country.'
The Government will look to set out further reform to wider business rates, including small business rates relief, at the Budget. But ministers have been playing down the prospect of replacing the system entirely.
Chancellor John Healey said: 'Pubs, clubs and live music venues are at the heart of communities across the UK.
'They bring people together, support local jobs and help keep high streets and town centres busy - which is why we will back them all the way.
'We are determined to bring hope back, give businesses the support they need and generate growth in every postcode.'
Chief Secretary to the Treasury Emma Reynolds claimed the measure was 'fully funded' - but admitted the details still need working out.
She told Sky News: 'This is fully funded, and it will be funded in a couple of major ways. Firstly, by looking at business rate reliefs on businesses that cause social harm, such as vape shops, and secondly by cracking down on those online businesses who are not paying VAT.'
She added: 'I am confident as chief secretary, having looked at the numbers, and we will set out the numbers in more detail at the budget, that we will fund this announcement in the ways that I've just mentioned.
'There may be additional measures that we look at as well, but it is those two principal ways that we're going to fund this business rate relief.'
Steve Perez, who owns two hotels, both including a pub and a restaurant, told BBC Radio 4's Today programme: 'Our business rates went up to about 130 per cent (in April).
'So this tiny, well, obviously it's welcome £1,000, but this won't make any material difference to any pub.
'And it's interesting to know that they haven't talked about restaurants and hotels because bear in mind most pubs these days serve food, many pubs also have accommodation.
'And we've had increases in national insurance, we've had the EPR, the tax no one's ever heard of – extended producer responsibility.
'And it's a little bit like the supermarkets putting up the prices and then saying they've reduced them.'
Iain Hoskins, owner of Ma Pub Group in Liverpool, cast doubt on how many venues would be covered by the change.
He told BBC Radio 4's Today programme: 'The worry has been, obviously, in recent years, I mean, when our venues from last year to this current year got revalued, we saw increases of between 100 per cent and 150 per cent on the rates that we pay.
'So that just goes to show how much they went up by. And while 20 per cent – particularly if that 20 per cent is on top of the 15 per cent and other help that's there – that can be very meaningful for businesses, independent businesses such as mine.
'But as always, the devil is in the detail … I got very excited last year when we were told about the 15 per cent. But actually, it worked out that only one out of the five venues that we had qualified for that support because they didn't have the word pub in their name.
'They were a cafe bar, which was a posh pub, but they were a pub, you know, nonetheless.'
He said his bill was between £200,000 and £300,000 across his venues.
'I don't want to sound ungrateful, but the increases were so huge last year that now we're sort of chipping away at some of those increases. We're not actually … getting better value than we had before. We're still having to find extra money for these business rates.
'But you know, it is a relief that actually some of that is mitigated quickly, 20 per cent isn't an insignificant figure.'
Mr Burnham told the first meeting of his Cabinet on Tuesday that they must 'always show how they are going to pay' for policies.
However, there has been little clarity about the first set of measures.
Yesterday the PM announced a £2 bus fare cap in England. The £450million cost was explained as converting climate grants to developing countries to loans, but Transport Secretary Heidi Alexander conceded interest rates would be 'favourable'.
The Government would still need to borrow more to cover the spending.
Mr Burnham had previously capped bus fares at £2 in Greater Manchester during his time as Mayor.
On Tuesday the PM laid plans to cut VAT on electrical bills which the government said could save the households around £45 a year.
Think-tanks said it would save £25 at best, and likely be wiped out by rising energy costs.
The £850million cost was meant to come from scrapping Keir Starmer's ID cards scheme, but former Cabinet minister Darren Jones pointed out funding had not been earmarked for that.
As a result Mr Healey will have to find the money at the Budget this Autumn.
A £340million commitment to 'end' rough sleeping was described as being met from within existing budgets.
Meanwhile, Mr Burnham has made Scottish Labour leader Anas Sarwar a lord and minister in the Department for Business, Innovation, Science and Trade as part of a raft of ministerial appointments on Wednesday night.
Lord Sarwar was among the first to call for Sir Keir Starmer to stand down earlier this year.
Later today, Mr Burnham will meet the leaders of Scotland and Wales for the first time since as PM on a visit to Glasgow.
Mr Burnham backs further devolution, but both First Minister of Scotland John Swinney and the First Minister of Wales Rhun ap Iorwerth, want independence for their countries.
The former Manchester mayor said he will not be considering any referendums and is instead focused on delivering growth.
Ahead of the meetings, the PM said: 'When I say we need good growth in every postcode, I mean every postcode across the whole of the UK. Every place and every person matters.
'I'm not focused on point scoring or discussing constitutional changes like referendums, I want practical measures to help people live well and bring back hope.'
The First Minister of Wales said: 'I look forward to meeting the Prime Minister in Glasgow today.
'It is fitting that we meet in Scotland, as it underlines Wales's case for parity of powers and a fairer funding model that reflects our needs.
'Number 10 North must not become just Whitehall with a different postcode.
'I agree wholeheartedly on empowering communities – it's at the heart of my politics – but decisions affecting Wales should be made in Wales, and it is for the Welsh Government and our Senedd to work with the people of Wales on how power is exercised and shared within our nation.
'At a time when families are still feeling the pressure of the cost of living, I am also keen to discuss how our governments can work together as equal partners to deliver improvements to the lives of people in Wales.'
Mr Burnham will also be at the opening ceremony of the 2026 Commonwealth Games today.
He is expected to meet with the First Minister and Deputy First Minister of Northern Ireland on his tour of the United Kingdom in August, where he will visit places across England, Scotland, Wales and Northern Ireland.
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