More than 200 establishments shut in first half of 2025 as rising costs and slashed business rates relief devastate hospitality sector
Eight pubs are closing across the UK every week in what industry leaders have branded a “heartbreaking” crisis that threatens to strip communities of their social heart whilst destroying thousands of jobs.
Analysis of official government figures has revealed that 209 pubs were demolished or converted for other uses during the first six months of 2025, with the South East bearing the brunt of closures as 31 establishments vanished from the region.
The devastating toll means 2,283 pubs have permanently disappeared from communities across England and Wales since the start of 2020, with industry bosses warning the trend is accelerating as establishments struggle with soaring costs and punishing tax increases.
‘You Can’t Make Money Anymore’
Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), said the Government needs to act urgently to save Britain’s pubs from extinction.
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,” Ms McClarkin told reporters.
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. This is a really sad pattern, and unfortunately a lot of these pubs never come back.”
Last month, one pub owner told Sky News: “You can’t make money anymore. It’s not surprising so many pubs are closing at an alarming rate.”
Business Rates Bombshell
The crisis has been driven by a perfect storm of rising costs, with pubs facing a devastating 140% increase in business rates bills after government support was slashed in April.
Hospitality businesses previously received a 60% discount on their business rates up to a cap of £110,000, but this crucial lifeline was cut to just 25% in April 2025, despite warnings from the industry that such a move would trigger widespread closures.
Alex Probyn, practice leader of property tax at commercial real estate specialists Ryan, which analysed the government data, warned the financial squeeze is becoming unbearable.
“Slashing business rates relief for pubs from 75% to 40% this year has landed the sector with an extra £215 million in tax bills,” Mr Probyn said. “For a small pub, that’s a leap in the average bill from £3,938 to £9,451 – a 140% increase.”
He added: “These costs are all quietly draining profits until staying open becomes impossible.”
Rising Labour Costs Compound Crisis
The hospitality sector has also been hammered by increases to employment costs, with the national minimum wage rising by 6.7% to £12.21 an hour for workers aged 21 and older in April.
Simultaneously, the Government increased employer national insurance contributions from 13.8% to 15% and lowered the threshold at which firms must pay the tax, creating what industry leaders describe as an unsustainable burden for labour-intensive businesses.
The BBPA estimates that for every £3 spent in a pub, £1 goes straight to the Treasury through a combination of beer duty and VAT, leaving razor-thin margins for operators already struggling with soaring energy costs and inflation.
Regional Devastation
The data, analysed from Valuation Office Agency figures, shows the overall number of pubs in England and Wales has fallen to just 38,780, including those vacant and being offered to let.
The South East suffered the worst losses with 31 closures, followed by the West Midlands with 27 and the North West with 23. The East of England fared best but still lost 13 pubs, whilst the North East saw 17 establishments disappear and the South West lost 18.
Many of these historic buildings have been demolished entirely or converted into homes, offices, or other uses such as day nurseries, meaning they are lost to communities forever.
Jobs Crisis Looms
The BBPA has warned that Britain is on track to see 378 pub closures by the end of 2025 – equivalent to one every single day – up from 350 in 2024. This would result in approximately 5,600 direct job losses, not counting the wider impact on supply chains including farmers, brewers, and delivery drivers.
The beer and pub sector contributes more than £34 billion to the UK economy annually and supports over one million jobs, making the crisis a significant threat to economic growth and employment.
Industry Demands Action
Ms McClarkin said swift government action could still save many pubs from closure: “The Government needs to act at the budget, with major reforms to business rates and beer duty. We’re not asking for special treatment, we just want the sector’s rich potential unleashed.”
The BBPA is calling for meaningful business rates reform, measures to mitigate rising employment costs, and cuts to beer duty to help pubs survive the current crisis.
Industry leaders have also pointed to energy costs remaining at punishing levels, with some operators reporting bills still double their pre-Ukraine war levels, adding another layer of financial pressure to already struggling businesses.
Communities Under Threat
The closure of local pubs represents more than just economic losses. For many communities, particularly in rural areas, the pub serves as the last remaining social space where residents can gather.
When a pub closes it puts people out of a job, deprives communities of their heart and soul, and hurts the local economy,” Ms McClarkin said. “However, it’s not too late to change this sad state of affairs.”
With the autumn budget approaching, the hospitality sector is watching anxiously to see whether the Government will provide the support needed to prevent hundreds more pubs from calling last orders for the final time.
The trend shows no signs of slowing, with industry experts warning that without urgent intervention, Britain could lose another 378 pubs by year’s end – permanently erasing these vital community assets from the nation’s social fabric.
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Image Credit (Shortened):
Guinness signage in Dublin (photo taken 13 Aug 2011) – by Mikel Ortega (via Panoramio bot), licensed under CC BY‑SA 3.0, via Wikimedia Commons.
