Eight pubs a week have shut their doors over the first half of 2025, new government figures show.
The data reveals that more than 200 pubs over all have closed in the first six months of this year amid rising tax and labour costs. These pubs were either demolished or converted for other uses.
- These pubs have the best outdoor gardens and extraordinary views
- Britain’s best country pubs with rooms
Why are pubs closing in Britain?
These closures have taken place amid rising tax and labour costs, with the 1.2% rise in employer national insurance contributions and the 6.7% hike in the national minimum wage (over 16% for 18-20-year-olds) – the latter a boost for low-paid workers – having placed an additional strain on pubs and other similar small businesses.
Changes to discounts on business rates have also contributed to the challenges facing the hospitality industry. In April, the 60% discount on business rates bills (up to a cap of £110,000) was slashed to just 25%. The industry is lobbying government for supportive tax measures from the Treasury.
The economic difficulties over the past few years have been an amalgamation of the effects of Brexit, the Covid-19 pandemic and lockdowns, and the soaring energy prices following the Russian invasion of Ukraine in 2022.
The cost-of-living crisis affects both sides of the hospitality industry, with both pubs and the punters feeling the pinch when it comes to the price of energy and product.
The cost of going to the pub is now more than it ever has been, with the average price of a pint of beer costing £5.17 in June – 34p more than it was in February. In London, those prices are higher still, with the average pint costing £6.10.
As a result, fewer people are being enticed out, a survey by Deloitte in the Financial Times suggested. The study found that between the end of 2023 and start of 2024, the desire to “eat out” and “drink in pubs” in the UK had dropped by about 6%.
The pressure on night-time industries has been felt particularly hard in the South East, according to the data, with 31 pubs lost in six months this year. The overall number of pubs in England and Wales – including those vacant or on the market to let – has fallen to 38,780, a decrease of 2,283 from the beginning of 2020.
- Britain’s best country pubs with rooms
- Discover Britain's most haunted pubs and their violent, murderous past
- Britain's most remote pubs and cafes
Top image: The Queen Matilda Tavern, formerly known as The Cross Inn, a 17th-century pub in Avening in the Cotswolds, now closed (credit: Getty Images)
