The British Beer and Pub Association (BBPA) warns that high taxes, rising operational costs, and regulatory burdens are causing a surge in pub closures across the UK, with over 370 expected to shut in 2025—more than one per day—leading to thousands of job losses and significant impacts on local economies and supply chain industries like farming and brewing.

Despite government claims of being 'pro-business,' recent tax hikes, including increased National Insurance contributions and reductions in business rate relief, have intensified financial pressures on pubs, contributing to the closure of approximately 378 establishments this year.

The industry is also grappling with soaring energy costs, which are up to double pre-energy crisis levels, and a heavy tax burden where for every £3 spent on food and drinks, £1 goes to taxes, further squeezing profit margins.

Some pubs, like Young’s, are still seeing positive signs, with a 7% sales increase early in the year, thanks to factors like warm weather encouraging more patrons, but overall, the outlook remains challenging.

Following the October Budget, about 29% of hospitality business owners plan to reduce opening hours due to rising operational costs, reflecting widespread financial strain.

If current trends continue, research suggests the UK could have fewer than 1,000 pubs by 2070, highlighting the long-term threat to the sector.

The rising number of closures—up from 350 in 2024 and 769 insolvencies in 2023—are expected to negatively impact supply chain industries such as farming and brewing.

Experts recommend that pubs diversify their offerings with events like food pop-ups, partnerships with local vendors, and cultural activities to attract more customers and mitigate closures.

The BBPA estimates that more than one pub a day will close across Great Britain in 2025, totaling approximately 378 closures, which will lead to over 5,600 job losses.

The financial squeeze is compounded by recent budget cuts, including a reduction in business rate relief from 75% to 40%, and increased costs from beer duty, VAT, waste disposal, and producer responsibility.

The trend of closures and insolvencies underscores a troubling decline in the industry, with 769 closures in 2023 compared to 518 in 2022, signaling a worsening situation.

The cumulative financial pressures threaten the future of pubs, with government reforms in business rates underway but not yet enough to offset the rising costs that are pushing many establishments toward closure.