Pubs are set to come under further pressure when a raft of cost increases linked to the October Budget. The British pub industry is facing a crisis, with around six pubs closing every week in 2024, resulting in approximately 4,500 job losses, according to the British Beer and Pub Association (BBPA). The industry body warns that urgent government intervention is needed to prevent further “completely avoidable” closures.
![[A pub with its doors closed]](https://static.independent.co.uk/2025/02/16/21/01JM6WPFP537D3EHCWMS29SX41.jpg)
New figures from the BBPA reveal a bleak picture for the sector, with 289 pubs in England and Wales permanently shutting their doors last year. London was the hardest hit region, witnessing the closure of 34 pubs. These closures come as pubs grapple with a perfect storm of economic challenges. Rising interest rates have increased borrowing costs for businesses, while energy bills remain stubbornly high.
Simultaneously, the cost of living crisis continues to squeeze household budgets, impacting consumer spending and leaving less disposable income for pub visits. The BBPA stresses the need for government support to help pubs navigate these difficult trading conditions and ensure their survival as vital community hubs. 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. A Government spokesman said: “Thriving pubs are often at the heart of our communities, and we’re taking action to support them by introducing a permanent, new lower business rate from 2026.
