British pubs are closing their doors at an alarming rate of 34 establishments monthly, marking the most severe decline since the pandemic era. Recent analysis from real estate adviser Altus reveals that 412 pubs permanently ceased operations this year, driving the total number of UK pubs below 39,000 for the first time in recorded history.
London has experienced the most significant impact, with 55 pubs closing this year alone, reducing the capital’s total to 3,470. The past five years have witnessed the disappearance of 2,074 pubs across Britain’s cities, towns and villages, with many being converted into residential properties or offices.
The industry faces mounting pressures from impending legislative changes announced in the October budget. Major pub groups including Mitchells & Butlers, JD Wetherspoon and Marston’s have expressed serious concerns about rising operational costs. The national living wage increase of 6.7 per cent and a staggering 16.3 per cent rise for young workers aged 18-20 will significantly impact bottom lines.
Adding to these challenges, employer national insurance contributions are set to rise from 13.8 per cent to 15 per cent, while the threshold for payment has been reduced from £9,096 to £5,000. This translates to an additional £614 per employee cost for pub operators.
The British Beer and Pub Association’s chief executive, Emma McClarkin, emphasises the sector’s crucial economic contribution, noting that “brewers and pubs pour billions into the economy and support more than a million jobs.” Industry experts project that the reduction in business rates discount will burden pubs with an extra £215 million in costs during 2025-26, potentially forcing more establishments to close permanently.
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