Almost 300 pubs closed last year ahead of cost rises
Around six pubs shut their doors for good every week last year, resulting in around 4,500 job losses, according to industry figures.
The British Beer and Pub Association warned that urgent Government action is needed to avoid more “completely avoidable” closures.
Fresh figures from the trade body found that 289 pubs served last orders for a final time in 2024 in England and Wales.
The figures showed that London saw the highest proportion of its pubs shut down over the year, as 34 closed down.
The closures come amid pressure from higher borrowing costs and high energy bills for businesses, alongside a continued squeeze on household finances as mortgage and rent costs increase.
Pubs are set to come under further pressure when a raft of cost increases linked to the October Budget, such as higher National Insurance contributions and an increase in the minimum wage, come into force in April.
The trade body has warned that the cumulative impact of the Budget will create an extra £650 million in costs for the sector, worsening the outlook for publicans.
It urged the Government to overhaul the current business rates system of property tax for high street firms, including pubs, to help ease the burden on the sector.
Many firms are also due to face increased costs in April, due to a planned reduction in the business rates discount for hospitality, leisure and retail firms from 75% to 40%.
Emma McClarkin, chief executive of the BBPA, said: “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.”
The latest data means that the number of pubs in England and Wales dropped from 47,613 in 2019 to 45,345 in 2024, the BBPA said.
Press Association – Henry Saker-Clark