Britain lost one pub a day in 2025
One pub a day closed its doors in 2025 as businesses were forced to battle mounting cost pressures and an increasingly heavy tax burden.
Fresh analysis from global tax firm Ryan showed 366 pubs were demolished or converted for other uses in the last 12 months.
Since 2020, nearly 2,000 pubs have closed for good, roughly five per cent of the 40,617 venues open at the beginning of 2020.
The figures are a stark reminder of the perilous state of the pub sector and the wider hospitality sector, which is gearing up for yet another jump in costs next year.
Pubs set for higher business rates
The Chancellor announced long-awaited changes to the controversial business rates system at the Budget in November, cutting rates for some retail, hospitality and leisure firms.
But revaluations of property values mean pubs will still pay higher rates, with trade body UK Hospitality estimating a £1,400 rise in the average bill next year.
Firms have sounded the alarm about the changes in the aftermath of the Budget, with a campaign spearheaded by the Wonky Table lobby group founder, Andy Lennox, banning Labour MPs from hundreds of pubs and restaurants across the country.
Under the draft proposals, the average pub’s estimated rental value used to calculate business taxes in England and Wales is set to rise by an average of 30 per cent to £40,245.
This change will add approximately £365m to the total taxable value of the pub industry, bringing the national total to nearly £1.58bn.
It also comes as the government is set to end the 40 per cent tax discount for the hospitality sector, meaning many businesses will face significantly higher costs.
Sobering pubs data should be ‘wake up call’
Alex Probyn, practice leader for Europe & Asia-Pacific property tax at Ryan, said: “This data should serve as a wake up call. It reflects deep structural pressures on pubs.
“Many survived the pandemic through resilience and community support, only to be pushed to the brink by rising costs and a rating system that no longer reflects economic reality.”
The new data provides a direct blow to Prime Minister Sir Keir Starmer, who touted plans to cut red tape for pubs and revitalise the hospitality industry in October.
Starmer unveiled a four-week “blitz” survey of landlords, customers and neighbours, in a review expected to result in a bonfire of old licensing rules, amid fears some historic venues have shut over noise complaints or advertising concerns.
But firms have still struggled to get to grips with mounting pressures from the Labour government policies, including the Rachel Reeves’s tax raid on businesses through her hike to employers’ national insurance in her first Budget and increases to the minimum wage.
Emma McClarkin, chief executive of the British Beer and Pub Association, said: “Every time we lose a pub we lose a piece of our social fabric.
“Many of these closures are totally unnecessary and the result of a heavy tax and rates burden, which is why it’s never been more vital for a pub-specific business rates relief which could prevent more closures and more job losses.
“The situation is drastic and we want to work with Government to ensure pubs are given a fair deal otherwise communities will lose cherished local institutions and, once they’re gone, they’re gone for good.”