Almost 300 pubs in England and Wales shut their doors permanently in 2024, with an average of six closures per week, according to figures from the British Beer and Pub Association (BBPA). The closures resulted in an estimated 4,500 job losses, prompting renewed calls for government intervention.
Financial Pressures and Cost Increases
The pub sector has faced increasing financial strain due to higher borrowing costs, soaring energy bills, and declining consumer spending power. Many businesses have struggled to absorb these pressures, particularly as mortgage and rent costs continue to rise.
The situation is expected to worsen in April when new cost increases, linked to the October Budget, come into effect.
These include higher national insurance contributions and an increase in the minimum wage, adding further financial burden on struggling pubs. The BBPA estimates that these changes will create an additional £650 million in costs for the industry, driven by a combination of rising employment costs and reduced tax relief.
Another major concern is the planned reduction in the business rates discount for the hospitality sector, which will drop from 75% to 40% in April.
The BBPA has urged the government to introduce a fairer business rates system to prevent further closures, arguing that the current framework disproportionately affects high street businesses like pubs.
London Sees Highest Rate of Pub Closures
The figures show that London experienced the highest rate of pub closures, with 34 venues shutting down over the year. In total, the number of pubs in England and Wales has declined from 47,613 in 2019 to 45,345 in 2024.
BBPA Chief Executive Emma McClarkin emphasised that consumer demand remains strong but warned that rising costs are eroding profits.
“The scale of these closures is completely avoidable because pubs are doing a brisk trade. Consumer demand is there, however, profits are being wiped out with sky-high bills, and pubs are facing yet more rates and costs 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. 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.”
Government Response and Future Outlook
A government spokesperson acknowledged the challenges faced by pubs but pointed to upcoming support measures. The government plans to introduce a permanent lower business rate from 2026, which it says will help ease the burden on businesses.
Additionally, more than half of UK employers will see either a cut or no change in their national insurance bills next year.
The spokesperson also highlighted efforts to revitalise high streets, including tackling anti-social behaviour and empty properties, which they argue will help create a more business-friendly environment.
However, industry groups remain concerned that immediate relief is needed to prevent further closures. Without urgent action, publicans fear that more establishments will be forced to shut, impacting local economies and communities.
The future of Britain’s pubs will heavily depend on the ongoing debate over government intervention and economic policy, especially as the industry faces another year of financial challenges.
