British pubs endured a difficult year in 2025, with new data revealing that one pub closed permanently every day as rising costs continued to weigh heavily on the sector. The figures underline the scale of the challenge facing hospitality businesses across England and Wales.

Permanent Closures Accelerate

An analysis of official government statistics by tax specialists at Ryan shows that 366 pubs were either demolished or converted to alternative uses in the 12 months to December. These losses reduced the total number of pubs, including vacant sites, from 38,989 to 38,623 across England and Wales.

According to Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, these closures represent permanent losses rather than temporary shutdowns. Once buildings are redeveloped into housing, offices, nurseries or cafés, they almost never return to pub use. This highlights a structural shift rather than a short-term downturn.

Regional and Long-Term Impact

Every region recorded a net fall in pub numbers during 2025. The steepest declines were seen in the East Midlands, North West and Yorkshire and the Humber. While the rate of closures has slowed slightly, almost 2,000 pubs have disappeared over the past five years, pointing to sustained pressure on the industry.

The challenges come after a year in which pubs faced higher national minimum wage costs and increased national insurance contributions. These measures added to already tight margins for operators still recovering from pandemic disruption.

Rising Business Rates Add Further Strain

Looking ahead, many pubs are bracing for further financial strain from April, when average business rates bills are expected to rise following an estimated 30 per cent increase in rateable values. Industry leaders warn that the current rating system no longer reflects the economic reality facing pubs.

Emma McClarkin, chief executive of the British Beer and Pub Association, described the situation as drastic, warning that each closure erodes local communities. She called for targeted pub-specific business rates relief, arguing that without reform, unnecessary closures and job losses will continue.

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