More than 150 English and Welsh pubs closed their doors for good in the first three months of this year, according to analysis based on government data.
The rate of pubs being demolished or redeveloped for other purposes has increased by almost 60%, says commercial real estate intelligence firm Altus Group. The sector has been hammered by rising costs, especially in energy.
The overall number of pubs in England and Wales – including those vacant and being offered to licensees – has dropped to 39,634. Altogether, 153 pubs closed for good between 1st January and 31st March. That’s an everage of 51 pubs a month. In 2022, 386 pubs were lost for good, so the rate of closure appears to be increasing.
Alex Probyn, president of property tax at Altus Group, said: “Pubs have seen their values for the business rates tax fall 17% overall and, with measures taken at last year’s Autumn Statement, that will mean a tax saving of £5,500 for the average pub.
“But that simply won’t compensate for the energy support being lost, making plots even more attractive for alternative investment.”
After the Energy Bill Relief Scheme ended on 1st April, the average pub would need increase its turnover by at least 11% just to break even, according to the British Beer & Pub Association (BBPA).
Wholesale energy prices are, on average, lower now than they were in March 2022, but these wholesale price drops are not being passed onto customers locked into extortionate contracts.
“Energy bills are decimating our sector, with extortionate costs wiping out profits and closing pubs at a faster rate than the pandemic,” said Emma McClarkin, chief executive of the BBPA.
“Pubs that were profitable and thriving before the energy crisis are being left with no option but to shut up shop. We have been raising the alarm for months that energy costs are posing an existential threat to pubs across the country and these figures are evidence of that.
“It is essential that the government intervenes to ensure energy suppliers are offering the option of renegotiation to pubs locked into unmanageably high energy contracts. Make no mistake, the longer this goes on, the more pubs will be lost forever in communities across the country. Something must be done immediately to save them.”
