Around six pubs shut their doors for good each week last year, leading to approximately 4,500 job losses, according to industry figures.
The British Beer and Pub Association (BBPA) has warned that urgent Government intervention is needed to prevent further “completely avoidable” closures in the coming months. The organisation has called for immediate reforms to ease the financial burden on the industry, which continues to struggle with mounting operational costs.
New figures from the trade body reveal that 289 pubs served their last pints permanently in England and Wales during 2024. The capital bore the brunt of the closures, with 34 London pubs shutting down over the course of the year.
The hospitality sector has been grappling with a host of economic challenges, including soaring energy costs, rising interest rates, and increased business expenses. At the same time, household finances remain under pressure due to climbing mortgage rates and rent prices, leaving many consumers with less disposable income to spend in pubs and restaurants.
Further financial strain is expected in April when a series of cost increases, introduced in the October Budget, come into effect. Among the key changes are higher National Insurance contributions and an increase in the minimum wage, both of which are set to impact pub owners significantly.
The BBPA has estimated that the cumulative financial impact of these changes will add an extra £650 million in costs to the pub sector, exacerbating the already difficult trading conditions faced by publicans.
Calls for business rates reform
The trade body has been vocal in its demand for an overhaul of the business rates system, which currently places a significant tax burden on high street firms, including pubs. The BBPA argues that without urgent reform, more businesses will be forced to close their doors.
Additionally, many hospitality businesses will see a reduction in the business rates relief available to them in April, when the discount for hospitality, leisure, and retail firms is set to drop from 75% to 40%. This reduction is expected to further strain businesses that are already struggling to stay afloat.
Emma McClarkin, chief executive of the BBPA, described the scale of pub closures as entirely preventable.
“The scale of these closures is completely avoidable because pubs are doing a brisk trade,” she said. “Consumer demand is there, however, profits are being wiped out by sky-high bills, and pubs are facing yet more rates and cost increases come April.
“We’re right behind Labour’s mission to supercharge growth and can deliver this economic boost across the UK, but only if it is easier for pubs to keep their doors open.
“The Government must urgently bring in meaningful business rates reform and phase in new employment costs so pubs can keep boosting the economy, supporting local jobs, and remaining at the heart of communities.”
According to the latest data, the total number of pubs in England and Wales has fallen from 47,613 in 2019 to 45,345 in 2024. This downward trend has raised concerns among industry leaders about the long-term future of the pub sector if economic conditions do not improve.
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Government response
A Government spokesperson acknowledged the importance of pubs within communities and reiterated its commitment to supporting the sector.
“Thriving pubs are often at the heart of our communities, and we’re taking action to support them by introducing a permanent, new lower business rate from 2026,” the spokesperson said.
“More than half of all UK employers will either see a cut or no change in their National Insurance bills next year, and we’re doing more to support our high streets by tackling anti-social behaviour and empty properties.”
Despite these assurances, industry leaders remain sceptical about whether the proposed measures will be sufficient to stem the tide of closures. Many publicans argue that immediate relief is required to offset the financial pressures they are currently facing, rather than long-term policy changes that may take years to come into effect.
With no immediate resolution in sight, publicans, employees, and customers alike will be watching closely to see if the Government takes further steps to prevent more closures in 2025. Meanwhile, industry leaders continue to push for urgent financial support, warning that without it, even more pubs could be forced to shut their doors in the near future.
