More than 400 pubs in England and Wales shut their doors for good this year against a backdrop of rising costs and cautious spending among consumers.
The number of pubs has fallen below 39,000 for the first time, as 412 were demolished or converted for other uses in the year to December, according to an analysis of government figures by the property data company Altus Group. Most of the closures happened in the first half of the year.
The overall number of pubs in England and Wales, including those vacant and being offered to let, fell to 38,989 as closures accelerated. Some of them were converted to homes, offices and day nurseries.
More than 34 pubs shut every month on average, the sharpest fall in numbers since 2021, when the hospitality sector was hit hard by Covid-19 lockdowns and soaring energy prices after Russia’s invasion of Ukraine.
London lost the greatest number of pubs this year, down by 55 to 3,470. In the West Midlands, pub numbers dropped by 53 to 3,904, and in the East Midlands, 47 closed, taking the number there to 3,496.
Since the start of 2020, more than 2,000 pubs have closed, under pressure from rising costs while consumers, struggling with higher rents and mortgage payments, have been spending less.
Pub operators and other companies face a further increase in costs from April, when a number of policies from the autumn budget come into force.
Alex Probyn of Altus Group said: “Many publicans that I speak to are extremely worried that this could be their last Christmas given the combination of hiking the amount employers will have to pay in national insurance, increases to the minimum wage and the business rates discount being slashed from 75% to 40% in 2025.
“Many pubs simply will no longer be viable, making plots even more attractive for alternative investment.”
Emma McClarkin, the chief executive of the British Beer and Pub Association (BBPA), said: “Brewers and pubs pour billions into the economy and support more than a million jobs, so we know that closures can have a disastrous impact for both the nation’s coffers and the job market.”
She called on the government to “swiftly deliver permanent and meaningful business rate reforms”.
In response to the Covid pandemic, hospitality businesses were given 100% business rates relief by the government between 2020 and 2022. This has been cut to 75%, and will be removed from April.
The BBPA estimates pubs will face an additional £71m bill from April after changes to employer national insurance contributions. Altus Group said the reduction in the level of the business rates discount would cost pubs an extra £215m during 2025-26.
