One pub is set to close every single day in 2025 across Britain, according to new figures from the British Beer and Pub Association (BBPA).
The industry body, which represents more than 20,000 pubs, estimates that 378 pubs will close this year across England, Wales, and Scotland. This would amount to more than 5,600 direct job losses.
The BBPA says it is not too late for government to solve the issue by swiftly reforming business rates for the sector, which is among the most highly taxed industries in the UK.
The trade association says reducing the cumulative tax and regulatory burden would help more pubs stay open. This would lead to more investment and jobs, while also protecting spaces that, for many communities, are the only places left to gather.
“Pubs are trading well but most of the money that goes into the till goes straight back out in bills and taxes,” said BBPA chief executive Emma McClarkin. “For many, it’s impossible to make a profit, which all too often leads to pubs turning off the lights for the last time.
“When a pub closes it puts people out of a job, deprives communities of their heart and soul, and hurts the local economy. However, it’s not too late to change this sad state of affairs. We know government recognises the economic and social value of pubs, and we’re not asking for special treatment, we just want the sector’s rich potential unleashed.
“We’re calling on government to proceed with meaningful business rates reform, mitigate these eye-watering new employment and [extended producer responsibility] costs, and cut beer duty.”
With the beer and pub sector pouring more than £34 billion into the economy in one year alone, and supporting more than 1 million jobs, the BBPA says government must remain committed to supporting the sector.
The projected 2025 figures compare to 350 closures in 2024. For every £3 spent in a pub, £1 goes straight to the tax man, the BBPA stresses. It warns that pub closures will have a further impact on those who are part of the supply chain, including farmers, brewers, and other industries who form part of the sector’s wider eco-system.
‘Community assets’ will be lost
On the BBC’s Today programme this morning, J W Lees managing director, William Lees-Jones, said: “I think the problem got worse in April when we saw the increase in national insurance and the minimum wage, because about a third of the pub’s costs are to do with wages, and so pubs are being pushed to the brink at the moment.”
He said it was the local pubs that were sold and closed down. Indeed, J W Lees themselves have just out two venues on the market.
Lees-Jones said this was not directly to do with their location, but rather the competition close by, and the investment needed to bring those pubs up to scratch.
“In our case, I think one of them will probably become a restaurant or a takeaway, and the other one probably will be turned into housing for multiple occupation.
“Communities will, unfortnately, end up losing pubs which are community assets.”
