Thousands of Jobs in Jeopardy

More than one in 20 pubs across England and Wales could shut their doors next year, putting 12,000 jobs at risk, according to new research by the Centre for Economics and Business Research (CEBR). The study, commissioned by the British Beer and Pub Association (BBPA), warns that unless the government provides urgent tax relief, as many as 2,200 pubs may close in 2025.

Molly Monks, Licensed Insolvency Practitioner, comments:

"When we look at these figures, we’re not just talking about statistics, we’re talking about livelihoods, communities, and long-standing family businesses. Insolvency practitioners are already seeing a rise in early warning signs from hospitality operators struggling with cash flow and debt repayments. Without targeted support, many will have no choice but to close their doors permanently."

This projection follows an already challenging year, with 378 pubs expected to close by the end of 2024. Many closures are occurring in rural areas, where pubs remain one of the few community meeting spaces.

Rising Costs Straining the Industry

Pub landlords point to a combination of factors making profitability increasingly difficult. These include high business rates, alcohol duty, higher employer National Insurance contributions, and the rising minimum wage. The industry also faces further strain from the potential removal of the 40 per cent business rates discount, which had already been reduced from 75 per cent earlier this year.

Molly Monks adds:

"The squeeze on margins is just relentless. When overheads climb at the same time as consumer spending weakens, even well-run businesses with historically strong balance sheets can find themselves in distress. Many pub owners are dipping into personal reserves or delaying creditor payments, both of which can be unsustainable long term."

Rachel Reeves, the Chancellor, is expected to confirm changes to business rates in the November Budget. The BBPA argues that without continued relief, pubs will struggle to survive, despite their contribution to economic growth and local communities.

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