Figures from CAMRA show an alarming rate of licensee turnover in the pub trade as the weight of unfair taxation and high costs leave businesses struggling.
Gary Timmins, CAMRA’s pub and club campaigns director, says that the Chancellor should consider this a ‘wake-up call’ ahead of the Budget.
In recent years, the rate of pubs lost to conversion or demolition in England has slowed slightly as communities make use of planning protection and the right to have their say on the future of their local.
Yet despite this clear evidence of demand, thousands of licensees — many of whom have run successful businesses for years — are now struggling to pull their pubs from the brink of closure, as record numbers of venues are forced to shut their doors.
Based on current trends, CAMRA data shows that more than1,200 pubs will likely be shuttered this year, compared to around 1,000 in 2023, and just over 800 in 2022.
While in many cases, new licensees step in to keep the pub open to its community, this rate of churn highlights a deeper problem. In many cases new licensees find themselves battling the same high costs as their predecessors and without meaningful Government action pubs everywhere may be in jeopardy.
“Hardworking licencees who run busy and popular pubs should not be struggling to make ends meet,” said Gary. “The trend in business closures that our data has highlighted is truly shocking, and I hope this is a wake-up call for government ahead of the Budget.
“Without meaningful change to our outdated and unfair tax system, this cycle will likely continue, with more licensees’ businesses failing, higher rates of pubs being shuttered to their communities, and new operators stepping into an increasingly hostile business environment.
“CAMRA has called for a fundamental overhaul of the business rates system, a greater discount on the tax paid on pints at the bar, and a new VAT rate for hospitality.
“Our campaigning relies on as many people as possible taking the time to get involved. With our simple online campaigning tool, it only takes a few minutes to contact your MP, and every email makes a difference.”
Five-point plan
Emma McClarkin, chief executive of the British Beer and Pub Association, said: “Pub closures don’t just hurt landlords, they hurt the local community who rely on them for socialising and jobs.
“During the general election, Labour outlined a five-point plan to support Britain’s pubs and made clear that economic growth was their priority.
“If the public house is to remain a public home, government must keep their word and back a sector that pours billions into the economy, supports more than a million jobs, and is a cornerstone of the community. If pubs are to keep the doors open the Chancellor must cut beer duty, reform business rates, and maintain the vital 75% business rates relief.”
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