A man walks past the boarded up Black Horse pub on September 25, 2024 in London, England.
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The pub is a central part of British culture, social life and the economy. But, sadly, you don’t have to walk too far in London to see boarded-up pubs as trouble brews for the industry.
One pub is set to close every single day in 2025 across Great Britain, according to latest figures from the British Beer and Pub Association (BBPA). The industry body, which represents more than 20,000 pubs, estimated that 378 pubs will close this year across England, Wales, and Scotland, which would amount to more than 5,600 direct job losses.
This comes amid a challenging backdrop for the industry, with a combination of reduced consumer spending and rising costs.
Increases to the minimum wage for workers, National Insurance contributions and business rates payments have contributed in part to some 89,000 job losses in the hospitality sector since the Autumn Budget, according to trade body UK Hospitality; that’s more than half of all job losses in the U.K. since last October.
London is experiencing a significant number of pub closures.
Tim Skinner, manager at The Devonshire Arms pub near Bond Street in central London, told CNBC that higher costs are having a big impact on his business.
“The National Insurance increased directly, the business rates increased directly, and obviously, maintaining the level of VAT where it is means that a business like this needs to find around £30,000 (around $40,000) extra a year just to stay still,” he said.
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Like many other publicans, Skinner says he’s had to pass some of these higher costs on to the consumer. This has led to the average price of a pint of beer surpassing £5 this summer.
“We’re having to pass some of those costs on to the customers, but we’re very mindful of where we sit in the marketplace. It is still very competitive, and we’re having to fight for every pound that the customer is willing to spend. So we’re trying to make savings where we can, but we’re running out of opportunities to do that,” Skinner added.
The British pub sector provides a significant economic contribution to the U.K. through direct revenue, employment, and its extensive supply chain. However, with the industry in decline and numerous closures, the British Beer & Pub Association says the knock-on effects for the U.K. economy will be significant.
“From grain to glass, our sector supports over £30 billion being pushed into the economy, £18 billion in taxes, one million jobs,” Charlie Hall, a spokesman for the BBPA, told CNBC.
With more pubs predicted to close this year, that will have “a massive impact” on the supply chain, he said, with everyone from hop farmers to glass manufacturers affected by those losses.
Ye Grapes pub Shepherd Market in the exclusive area of Mayfair on 9th May 2025 in London, United Kingdom.es)
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British pub landlords warn that urgent action is needed to cut business rates and VAT in the upcoming Autumn Budget. Pubs and breweries are amongst the most heavily taxed business sectors in the U.K.
Mick Howard, operations director of Star Pubs, highlighted a need to reform business rates, cut beer duty and avoid any further rises in National Insurance contributions, to protect the British pub industry. If nothing is done, more pub closures could lie ahead.
“We know that consumers are still going to pubs. They might go to pubs at different times. Now, they might go to pubs for different reasons, but they still go and visit their local pub. But without that support, if the costs still going up, the pubs just won’t be able to open the doors,” Howard told CNBC.
