Tax hikes call time on two pubs a day crushing 2,400 jobs
The government’s bitter round of tax hikes imposed on the hospitality industry is said to have forced the closure of two pubs a day in the first three months of the year in yet another blow to the already bruised sector.
Figures from the Beer Bar and Pub Association () showed 161 pubs across Britain closed their doors in the first quarter of the year. The shuttered sites equated to a loss of around 2,400 jobs, according to the trade body.
The trajectory for the industry marks a major escalation from just under a year ago, where the BBPA projected one pub a day would close in 2025 from cost pressures.
Emma McClarkin, chief executive of the BBPA, said: “The scale of these closures is avoidable because pubs are doing a brisk trade, but their profits are wiped out by a disproportionate tax burden and huge costs.
“For too many, the sheer weight of taxes and regulatory costs have forced them to shut up shop, which will only hurt communities, workers, and the wider economy.”
Wales was the only region to record a net gain of pubs in the first quarter at just three, whilst Scotland lost the most at 41. London’s total count fell to 3432 after 17 sites called time.
In 2025, 366 pubs were demolished or converted for other uses. This took the number that have ceased trading since the pandemic to near 2,000 – around five per cent of the 40,617 venues open at the beginning of 2020.
Pubs need ‘permanent’ help after Labour’s latest U-turn
Labour were forced into a screeching U-turn earlier this year after backlash from pubs over Rachel Reeves’ business rates overhaul announced at the Autumn Budget.
The Chancellor’s plans involved replacing temporary pandemic-era reliefs with a permanent, lower tax rate for high-street businesses starting in 2026. In the interim, the existing 75 per cent business rates discount for hospitality was reduced to 40 per cent.
But this fell flat with the industry, which warned when combined with a scheduled property revaluation and rising national employers costs the move could double or triple the tax bills for many pubs.
Amidst a row that led to numerous publicans barring Labour MPs from their premises, Reeves was forced into a specific rescue package for pubs and music venues that included a 15 per cent discount on bills starting in April 2026 and a two-year real-terms freeze to prevent the sector from collapsing.
Still, policies revealed in November’s Budget continue to hamper the sector, namely the hike to minimum wage that followed on from the previous Budget’s national insurance increase.
McClarkin called for the government to establish a “permanent long-term plan that will deliver permanently lower bills, a fairer system and ultimately protect this treasured sector”.
A government spokesperson said: “We are backing Britain’s pubs – cutting April’s business rates bills by 15 per cent followed by a two year freeze, extending World Cup opening hours and increasing the Hospitality Support Fund to £10m to help venues grow.
“Later this year, we’ll also build on our Pride in Place programme with our a new High Streets Strategy to revitalise our town centres later this year. This comes on top of capping corporation tax, cutting alcohol duty on draught pints and six cuts in interest rates, benefiting businesses in every part of Britain.”