The number of insolvencies of pub and bar companies has jumped 30% in the past year, according to national accountancy group UHY Hacker Young.
The number rose from 602 insolvencies in 2022/2023 to 784 insolvencies in 2023/24 (to the year ended 30th April.
Pub and bar insolvencies continued to rise over the last year, with fewer and fewer people willing or able to pay higher prices for drinks, says the accountant, especially in city centres.
The cost-of-living crisis continues to limit how much people are willing to spend on ‘non-essential’ products, like alcohol.
Peter Kubik, partner at UHY Hacker Young, said: “With money tight for many households, current alcohol prices means more people are choosing to drink at home instead of going out.
“The pub and bar industry has struggled for a long time, but the last two years have been particularly difficult.”
Footfall for pubs is also being affected by the rising number of non-drinkers in the UK, with 26% of people aged 16 to 24 now teetotal.
“The young in particular are drifting away from drinking after work or at the weekends, impacting pubs and bars,” said Peter. “The demographic trends for pubs and bars in the long term are very concerning.
“The new government will have to overhaul the current rate system in order to help the high street.”
He added: “After a year of rising insolvencies, pubs and bars are hoping that the boost of the Euros will mean a stronger summer of trading. That’s only likely to be transitory, however.”
