The year 2023 saw 509 pubs close for good across the UK, according to new figures from the British Beer and Pub Association (BBPA).
The beer and pub industry supports 936,000 jobs. These range from farmers growing barley and hops, to the brewers, pub landlords, and their staff who play hugely important roles in our communities. The industry contributes £26.2 billion to the UK economy and generates £15.1bn in tax revenue.
The closure of 509 pubs equates to more than 6,000 jobs lost at these pubs alone. This will have a major knock-on effect to the lives of those affected.
A pub is often the local economic force multiplier. If a local high street loses its pub, it loses a key anchor business which attracts footfall and which supports neighbouring businesses. More than 3,000 pubs have closed in the last six years.
At the last Autumn Statement, the chancellor announced a number of measures to continue to support the sector, but challenging conditions persist.
Despite the relative recovery of the sector, following the pandemic, brewers and pubs operate on incredibly narrow margins. They have high fixed costs, squeezed on all sides by higher-than-expected labour costs, rising prices of raw materials, and a heavy tax burden. They are also major users of energy.
“When a community loses a pub, it does not just lose the building and jobs, it loses a cultural asset at the heart of the community that is impossible to replace,” said Emma McClarkin, chief executive of the BBPA.
“In any local economy or community, pubs are an economic bellwether, and there is an obvious connection between the loss of pubs and the decline of local high streets.
“At the last Autumn Statement, the chancellor provided a number of measures to support the beer and pub sector. But now is the time to stop the rot, and at this Budget we need to set a path to secure the long-term sustainability for brewers and pubs with a cut to beer duty, a cap to the business rates multiplier, and a reduction to the VAT applied for hospitality venues.”
