Two British pubs closing every day as tax and cost pressures devastate hospitality sector – UK Times

Britain’s pub industry is facing a deepening crisis, with an average of two establishments closing their doors every day during the first three months of the year.

New figures reveal 161 pubs ceased trading across the country in the first quarter, marking a 26 per cent increase compared to the same period in 2025.

The closures, driven by mounting pressure from higher taxes and regulatory costs, are estimated to have resulted in the loss of approximately 2,400 jobs, disproportionately affecting younger workers.

This latest downturn follows a trend of decline, with 336 British pubs closing in 2025 and over 2,000 disappearing since the onset of the Covid pandemic in 2020.

The British Beer and Pub Association (BBPA) attributes the closures to rising labour costs, increased taxation, and a cautious consumer environment, and has called for longer-term changes to business rates and a wider overhaul of taxes on the hospitality sector.

While the government introduced a 15 per cent business rates relief for pubs and music venues in April, measures from last November’s budget, such as an increase in the minimum wage, have continued to inflate operational expenses for brewers and publicans.

Emma McClarkin, chief executive of the BBPA, emphasised the severity of the situation, stating: “The scale of these closures is avoidable because pubs are doing a brisk trade, but their profits are wiped out by a disproportionate tax burden and huge costs.

“For too many, the sheer weight of taxes and regulatory costs have forced them to shut up shop, which will only hurt communities, workers, and the wider economy.”

She added: “This underscores why Government’s business rates relief was so necessary, and the support such a welcome relief. We want to work with Government to establish a permanent long-term plan that will deliver permanently lower bills, a fairer system and ultimately protect this treasured sector.”

The impact has been felt unevenly across Great Britain. While Wales bucked the trend with a gain of three pubs, Scotland experienced the heaviest losses, with 41 closures. Other regions saw significant declines:

The UK Spirits Alliance, representing distillers nationwide, echoed calls for government action, urging a “proper review” of excise duty.

Neema Rai, a spokeswoman for the group and co-founder of Westminster-based Tamesis Dock and the Battersea Barge, stated: “Pubs have been hit hard in recent years and we’ve just been hit by yet another excise duty hike.

“Spirits offer higher profit margins and help keep us afloat, yet we have the highest rate of excise duty in the G7. The Government needs to carry out a proper review of excise duty if it’s serious about supporting hospitality because we’re fighting for our very survival.”

Industry bodies are now pressing for a comprehensive, long-term strategy to alleviate the tax burden and regulatory pressures threatening the future of Britain’s pubs.