Business

Britain is now set to lose a pub a day this year – as beer prices rise

Ryan Brothwell 2 min read
Britain is now set to lose a pub a day this year – as beer prices rise

One pub is set to close every single day in 2025 across Great Britain, according to latest figures from the British Beer and Pub Association (BBPA).  

The BBPA said “it is not too late” for the government to solve the issue by swiftly reforming business rates for the sector, which is amongst the most highly taxed industries in the UK.  

The trade association 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. 

“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,” said Emma McClarkin (CEO of the British Beer and Pub Association).

When a pub closes, it puts people out of a job, deprives communities of their heart and soul, and hurts the local economy, she said.

“However, it’s not too late to change this sad state of affairs. We know the 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 the government to proceed with meaningful business rates reform, mitigate these eye-watering new employment and EPR costs, and cut beer duty,” she said.

Bad news for beer prices

Increased taxes are having other knock-on effects in the industry, including the prices of beer. In April, the BBPA revealed the average price of a pint has broken the £5 barrier for the first time, partly due to rising costs placed upon the sector.

This comes as the sector continues to wrestle with a barrage of extra tax and fees following the April cliff-edge, which is costing the industry an extra £853 million.

Data published by the industry body in July shows that for every three pounds spent in a pub, one pound goes straight to the taxman.

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 who form part of the sector’s wider eco-system.

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