England and Wales saw One Pub Per Day Closed Permanently in 2025

The hospitality sector in England and Wales witnessed the permanent closure of one public house per day throughout 2025, as sustained cost pressures continued to exert considerable strain on the industry. Government statistics reveal that 366 pubs were either demolished or converted to alternative uses during the 12-month period ending in December.

The analysis, conducted by tax specialists at Ryan, demonstrates that the total number of public houses in England and Wales, including vacant properties and those available to let, decreased to 38,623 from 38,989 in the previous year. Industry experts have characterised the situation as drastic, particularly in light of anticipated increases in property tax obligations for many establishments from April 2026.

Alex Probyn, a property tax expert at Ryan, emphasised the permanent nature of these closures. The buildings have been repurposed as housing, offices, nurseries, cafés or other commercial ventures, and once converted, they rarely revert to their original function as licensed premises.

The figures underscore a persistent pattern of pub closures, with the hospitality sector facing mounting operational challenges. Nearly 2,000 pubs have disappeared over the past five years, although the rate of decline has modestly decelerated. Every region in England and Wales recorded a net loss of public houses during 2025, with the most significant declines observed in the East Midlands, the North-West and Yorkshire and the Humber.

The closures occurred against a backdrop of increased financial burdens for the sector. Public houses, along with other businesses, confronted rises in the national minimum wage and national insurance contributions from April 2025. The outlook for the sector appears increasingly challenging, with the rateable value of virtually all commercial businesses due for recalculation in April 2026, as mandated by the customary three-year review cycle used to determine business rates.

For public houses and certain other hospitality businesses, the anticipated increase has proved unexpectedly substantial, notwithstanding a three-year tapered relief measure announced by the government in its budget to mitigate significant rises. Probyn warned that the data should serve as a wake-up call, noting that many establishments survived the pandemic through resilience and community support, only to face existential threats from escalating costs and a rating system that no longer reflects economic reality.

Emma McClarkin, chief executive of the British Beer and Pub Association, described many of the closures as entirely avoidable and attributed them to an excessive tax and rates burden. She emphasised the vital importance of pub-specific business rates relief to prevent further closures and job losses, warning that the situation has reached a critical juncture. McClarkin stressed the need for collaboration with government to ensure public houses receive equitable treatment, cautioning that communities risk losing cherished local institutions permanently.

A Treasury spokesperson defended the government’s fiscal decisions, stating that the measures taken at recent budgets enable delivery of national priorities, including reducing waiting lists, debt and borrowing, whilst lowering the cost of living. The spokesperson highlighted a £4.3 billion support package designed to protect pubs and other businesses, which reduces total bill increases for public houses to 4 per cent rather than the 45 per cent they would have faced without intervention.

The Treasury also cited additional supportive measures, including efforts to ease licensing regulations to facilitate pavement drinking areas and one-off events, the maintenance of reduced alcohol duty on draught pints, and a cap on corporation tax.