The
‘heartbreaking’ number of pubs closing every week across UK revealed
British
Beer and Pub Association said the Government needs to act quickly to save pubs
across the country
Henry
Saker-Clark
Monday 18
August 2025 07:35 BST
https://www.independent.co.uk/news/uk/home-news/pubs-closing-uk-tax-budget-b2809371.html
Eight
pubs a week ceased trading across the UK during the first half of the year, new
figures reveal, as the industry grapples with escalating tax and labour costs.
Industry
leaders have described the trend as "heartbreaking", urging the
Treasury to implement supportive tax measures in the upcoming autumn budget.
Official
government statistics show 209 pubs were either demolished or repurposed for
other uses in the six months leading up to June.
This
decline has seen the total number of pubs in England and Wales, including those
vacant or available to let, fall to 38,780.
Since the
beginning of 2020, commercial real estate specialists at Ryan found a
staggering 2,283 pubs have permanently disappeared from communities across
England and Wales.
Valuation
Office Agency data indicates many of these establishments have been converted
into residential properties, offices, or even day nurseries.
The South
East bore the brunt of these closures in the first half of 2025, losing 31 pubs
within just six months.
The
closures come amid an intensifying backdrop for UK pubs, which were impacted by
increases to the national minimum wage, national insurance payments and
business rates payments.
In April,
the national living wage rose by 6.7 per cent to £12.21 an hour for workers
aged 21 and older.
At the
same time, the Government increased the rate of employer national insurance
contributions from 13.8 per cent to 15 per cent and also lowered the threshold
at which firms would pay the tax.
Many pubs
were also hit by changes to discounts on business rates, the property tax
affecting high street businesses.
Hospitality
businesses received a 60 per cent discount on their business rates bills up to
a cap of £110,000 but saw this cut to only 25 per cent in April.
Industry
bosses had warned that the jump in taxes particularly would lead to an
acceleration in pub closures.
Emma
McClarkin, chief executive of the British Beer and Pub Association, said the
Government needs to act quickly to save pubs across the country.
Emma
McClarkin, chief executive of the British Beer and Pub Association, said the
Government needs to act quickly to save pubs across the country
She said:
“It’s absolutely heartbreaking and there is a direct link between pubs closing
for good and the huge jump in costs they have just endured.
“Pubs and
brewers are important employers, drivers of economic growth, but are also
really valuable to local communities across the country and have real social
value.
“This is
a really sad pattern, and unfortunately a lot of these pubs never come back.
“The
Government needs to act at the budget, with major reforms to business rates and
beer duty.”
Alex
Probyn, practice leader of property tax at Ryan, warned the squeeze on the pub
trade is intensifying.
He said:
“Slashing business rates relief for pubs from 75 per cent to 40 per cent this
year has landed the sector with an extra £215 million in tax bills.
“For a
small pub, that’s a leap in the average bill from £3,938 to £9,451 – a 140 per
cent increase.
“The
combination of soaring business rates, higher national insurance contributions,
the rising national minimum wage and packaging taxes are all quietly draining
profits until staying open becomes impossible.
“When
that happens, developers are quick to snap up the plots for more lucrative
uses.”


