Last orders: London sees highest number of pub closures out of any English region
London has seen the highest number of pub closures out of any region in England, with a total of 46 haunts shuttering in the first half of the year, a new study has shown.
Across the whole of the UK some 383 pubs were also permanently closed within the same period, according to new figures from Altus Group, almost identical to the 386 pubs that were lost for good during the whole of 2022.
The number of pubs closing in the second quarter of the year was 50.3 per cent higher than in the first quarter of 2023.
A myriad of issuers have rocked the health of the hospitality sector including roaring energy bills, kicked off by Russia’s invasion of Ukraine and high inflation which has led to customers scaling back.
Ongoing rail strikes have also eaten away at trade particularly in London, as businesses continue to miss out on commuters heading into the city.
Pubs, alongside eligible hospitality, leisure and retail businesses currently get a 75 per cent discount off their business rates bills for the 2023/2024 tax year up to a cap of £110,000 per business but this is set to end at the end of March 2024.
Business rates are also set to rise next April in line with September’s headline rate of inflation which could also add more than six per cent to bills next year, the group warned.
Alex Probyn, president of property tax at Altus Group, has urged the Chancellor to use his Autumn Statement this coming November to provide more support for the ailing sector.
He said: “With energy costs up 80 per cent year -on-year in a low-growth, high-inflation and high interest rates environment, the last thing pubs need is an average business rates hike of £12,385 next year.”
CityAM has contacted The Treasury for a comment.