Around two pubs in Britain are closing each day in the first three months of the year, according to industry figures that highlight pressure from higher taxes and regulatory costs. The British Beer and Pub Association (BBPA) warned that the closures equate to the loss of around 2,400 jobs, with a particular hit to younger workers.
Figures from the trade organisation show that 161 pubs closed across Britain in the first quarter of the year. This represents a 26% jump against the same period last year, with local pubs having come under pressure from rising labour costs, taxes and caution among consumers.
Government Support and Rising Costs
Early this year, the Government announced business rates support for pubs after warnings from the sector that further tax changes could lead to more closures and job losses. A 15% tax relief for pubs and music venues came into effect last month. However, measures from last November's budget, such as an increase in the minimum wage, still added to a significant jump in business costs for pubs and brewers.
The BBPA said the latest closure figures highlight a need for longer-term changes to business rates and a wider overhaul of taxes on the hospitality sector.
Industry Reaction
Emma McClarkin, chief executive of the BBPA, said: "The scale of these closures is avoidable because pubs are doing a brisk trade, but their profits are wiped out by a disproportionate tax burden and huge costs. For too many, the sheer weight of taxes and regulatory costs have forced them to shut up shop, which will only hurt communities, workers, and the wider economy."
She added: "This underscores why Government's business rates relief was so necessary, and the support such a welcome relief. We want to work with Government to establish a permanent long-term plan that will deliver permanently lower bills, a fairer system and ultimately protect this treasured sector."
Regional Breakdown
It comes after a 336 drop in British pub numbers last year to 44,656. It meant more than 2,000 pubs had closed since the outbreak of the coronavirus pandemic in 2020. Wales was the only part of Great Britain to report a rise in pub numbers in the latest data, while Scotland witnessed the heaviest fall in numbers.
Here are the number of closures in each British region:
- East of England: 16 closures to 3,682 pubs
- West Midlands: 11 closures to 3,910 pubs
- South West: 13 closures to 4,582 pubs
- North West: 18 closures to 5,145 pubs
- Yorkshire and The Humber: 10 closures to 4,235 pubs
- South East: 26 closures to 5,643 pubs
- London: 17 closures to 3,432 pubs
- North East: 2 closures to 1,926 pubs
- East Midlands: 10 closures to 3,579 pubs
- Wales: 3 pubs gained to 2,901 pubs
- Scotland: 41 closures to 4,188 pubs
Call for Excise Duty Review
The UK Spirits Alliance, which represents hundreds of distillers across Britain, urged the Government to carry out a "proper review" of excise duty as hospitality is "fighting for our very survival."
Neema Rai, spokeswoman for the group and co-founder of Westminster-based Tamesis Dock and the Battersea Barge, said: "Pubs have been hit hard in recent years and we've just been hit by yet another excise duty hike. Spirits offer higher profit margins and help keep us afloat, yet we have the highest rate of excise duty in the G7. The Government needs to carry out a proper review of excise duty if it's serious about supporting hospitality because we're fighting for our very survival."
