Almost 400 UK pubs set to close in 2025 due to ‘high taxes and business rates'
The British Beer and Pub Association (BBPA) has estimated that 378 pubs will close this year across England, Wales and Scotland, which it said would amount to more than 5,600 direct job losses.
And now the government have been urged to reform business rates for the sector.
The BBPA said reducing the cumulative tax and regulatory burden would help more pubs stay open, leading to more investment and jobs while also protecting spaces that, for many communities, 'are the only places left to gather'.
BBPA chief executive Emma McClarkin said: 'Pubs are trading well but most of the money that goes into the till goes straight back out in bills and taxes.
'For many it's impossible to make a profit which all too often leads to pubs turning off the lights for the last time.
'When a pub closes it puts people out of a job, deprives communities of their heart and soul, and hurts the local economy.
'However, it's not too late to change this sad state of affairs. We know Government recognises the economic and social value of pubs and we're not asking for special treatment, we just want the sector's rich potential unleashed.
'We're calling on Government to proceed with meaningful business rates reform, mitigate these eye-watering new employment and EPR (extended producer responsibility) costs, and cut beer duty.'
The projected 2025 figures compare to 350 closures in 2024.
The BBPA warned that pub closures will have a further impact on those who are part of the supply chain, including farmers, brewers and other industries.
The Labour Government has said it plans to reform the current business rates system, and in March said it will publish an interim report on this during the summer.
However, in April's budget, the Government cut a relief on the property tax – that came in following the Covid pandemic – from 75% to 40%, resulting in significantly higher bills for hospitality, retail and leisure businesses.
The BPPA has called on the Government to speed up reforms of the commercial property tax to alleviate pressure on pubs.
The organisation warned earlier this year that the average price of a pint of beer would surge past £5 for the first time because of the cost hikes hitting the sector.
It said the average cost of a pint in the UK was expected to rise by about 21p as a result as pubs are forced to pass some cost inflation onto customers.
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