One pub to close every day in 2025, new data reveals

New data has revealed that almost 400 small pubs will close this year across England, Wales and Scotland, amounting to more than 5,600 job losses.

The British Beer and Pub Association (BBPA) has estimated that 378 small pubs are being forced to close in the face of unsustainable costs pressures, according to new data.

The industry body pointed to the heavy pressure of business rates – a tax on commercial properties – on the industry.

Pubs contribute 2.8 per cent of the total business rates bill but account for just 0.5 per cent of total business turnover, leading to an overpayment of around £500m.

“Most of the money that goes into the till goes straight back out in bills and taxes,” Emma McClarkin, CEO of the BBPA, said “For many, it’s impossible to make a profit.”

Business rates had been cut by 75 per cent during the pandemic to help local businesses survive, but that relief fell to 40 per cent this year despite continuing pressure on the industry.

The BBPA called on the government to “proceed with meaningful business rates reform” and to mitigate the “eye-watering” cost of new employment and packaging taxes.

Despite the tough state of affairs for small business, big pub chains have continued to grow.

Young’s, which operates 277 pubs across the UK, reported “strong momentum” at its venues for the 14 weeks ended 8 July.

The company said it “remained confident about the year ahead, despite the well-publicised challenges faced by our industry.”

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In fact, a host of major pub chains have recently reported upticks in revenue and profit, including Wetherspoons, Martson’s and Mitchells and Butlers.

For small, financially insecure pubs, however, the increase in costs has created a doom-loop where they have to restrict opening hours to stay afloat.

“Many are having to sacrifice long term customer relationships on the altar of profitability as they focus on the busiest hours,” head of insolvency at Price Bailey, Matt Howard, said.

Data from Price Baily earlier this year found that one in five pubs is technically insolvent, meaning they have negative assets on their balance sheets.