Rising tax and labour costs have caused the closure of eight pubs a week across the UK over the first half of the year, new figures show, as pressure piles on Rachel Reeves. Official Government statistics reveal that over the six months until June, 209 pubs were demolished or converted for other uses. The data analysed by the commercial real estate company Ryan show that pub numbers are now down to 38,780.
Since 2020, 2,283 pubs have vanished for good across England and Wales, with many converted into new homes, offices or day nurseries, according to Valuation Office Agency data. Industry bosses are pressing for more supportive tax measures from the Treasury ahead of the Autumn Budget. Emma McClarkin, chief executive of the British Beer and Pub Association, said: “It’s absolutely heartbreaking and there is a direct link between pubs closing for good and the huge jump in costs they have just endured.
“Pubs and brewers are important employers, drivers of economic growth, but are also really valuable to local communities across the country and have real social value.”
UK pubs are facing mounting pressure from rising costs. In April, the national living wage increased by 6.7% to £12.21 an hour for workers over 21, while the Government hiked the rate of employer national insurance contributions from 13.8% to 15%, with a lower tax payment threshold.
At the same time, business rates bills relief for hospitality was cut from 75% to 40% up to a maximum cash cap of £110,000, hitting many pubs already struggling with higher taxes and labour costs.
Alex Probyn, practice leader of property tax at Ryan, said: “Slashing business rates relief for pubs from 75% to 40% this year has landed the sector with an extra £215 million in tax bills.
“For a small pub, that’s a leap in the average bill from £3,938 to £9,451 – a 140% increase.
“The combination of soaring business rates, higher national insurance contributions, the rising national minimum wage and packaging taxes are all quietly draining profits until staying open becomes impossible.
“When that happens, developers are quick to snap up the plots for more lucrative uses.”
