Some 3,788 pubs could be at risk of closure if the Chancellor does not extend the £1,000 business rates sector relief for pubs, according to a new report commissioned by the British Beer and Pub Association (BBPA).

Even if just one-fifth of those pubs at risk were to close, it would equate to an additional 750 pubs closing on top of the current three pubs a day (upwards of 1,000 a year) that close their doors for good due to a range of cost pressures, including beer duty, business rates and VAT.

The report, produced by economics consultancy Europe Economics, also found that more than 20,000 full-time jobs and almost 30,000 part-time jobs in the pubs at risk of closure could be lost too.

This means that If just one-fifth of the pubs at risk were to close, 4,000 full-time and 6,000 part-time jobs would be lost.

 

Considerable tax pressures

 

Brigid Simmonds, chief executive of the BBPA, said: “The number of pubs in the UK is still falling; three close their doors for good each day. They are facing increasing and considerable tax pressures from a range of sources, particularly high beer duty, unfair business rates and VAT.

“This is deeply concerning because pubs are a great British institution and are often the social hub of their community.

“Pubs pay more than £500 million in business rates and 2.8% of the total bill, although they only equate to 0.5% of turnover. This important study highlights why we are calling on the Chancellor to extend the £1,000 rate relief for pubs beyond this year.

“This will save thousands of jobs and ensure that pubs across the UK can remain open, including community pubs and those in rural areas who would suffer most should their rate relief be axed. The report also confirms why delaying revaluation following a new Investment would also be a major boost.”