The British Pub Association predicts an alarming trend for British pubs, anticipating that one pub will close daily this year, primarily due to the heavy burden of business taxes. At the same time, the hospitality sector urgently calls for government action to address the steep costs currently faced.
The Beer and Pub Association (BBPA), representing over 20,000 UK pubs, forecasts 378 closures in England, Scotland, and Wales in 2023, threatening 5,600 jobs. This prognosis exceeds the closures seen in 2022 and continues a decline that has seen over 15,000 pubs permanently close since the year 2000.
The BBPA particularly highlights business rates as an insurmountable cost for many pubs, as these rates are often higher than what the pubs can afford given their slim profit margins. Additionally, the sector is grappling with high beer duty and VAT, with £1 of every £4 spent on beer going directly to the treasury. The recent hikes in employers’ national insurance contributions and new waste disposal rules have pushed the sector even further, with extended producer responsibility (EPR) obligations reportedly costing £60m annually.
The BBPA’s CEO, Emma McClarkin, emphasizes the dire financial situation but remains optimistic for change. She urges the government to reform business rates, reduce the impact of employment and EPR costs, and lower beer duty to preserve the pubs’ viability.
At a select committee hearing, hospitality industry leaders also stated their concern over skyrocketing energy costs. David Wigham of Admiral Taverns points out that while energy costs have doubled since the onset of the Ukraine crisis, customers are averse to price increases, and pubs typically lack the resources to invest in energy efficiency.
Despite these challenges, pubs have reportedly seen increased footfall in beer gardens due to warmer weather, as evidenced by 7% sales growth at established sites reported by the pub chain Young’s in the first 14 weeks of their financial year. Young’s maintains optimism for the coming year, despite the well-publicized difficulties its industry is facing.
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Source: https://www.theguardian.com/business/2025/jul/10/last-orders-pubs-in-britain-will-close-at-rate-of-one-a-day-in-2025-trade-body-warns
