Pubs will close at rate of one a day this year

The British Beer and Pub Association (BBPA) has warned that one pub will close every day this year, with a projected 378 closures across England, Wales, and Scotland.

The industry body, which represents more than 20,000 pubs, estimated that the pub closures would amount to more than 5,600 direct job losses.

The BBPA says that it is not too late for the Government to solve the issue by swiftly reforming business rates for the sector, which is amongst the most highly taxed industries in the UK.

The trade association said reducing the cumulative tax and regulatory burden would help more pubs stay open, leading to more investment and jobs while also protecting spaces that, for many communities, are the only places left to gather.

With the beer and pub sector pouring more than £34 billion into the economy in one year alone and supporting more than a 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 three pounds spent in a pub, one pound goes straight to the tax man, the BBPA stressed.

The BBPA warned 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.

Emma McClarkin, CEO of the British Beer and Pub Association, said “Pubs are trading well but most of the money that goes into the till goes straight back out in bills and taxes. 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 EPR costs, and cut beer duty.”