More than 200 pubs closed in six months amid tax hikes
Eight pubs a week shut their doors for good across the UK over the first half of the year amid rising tax and labour costs, according to new figures.
Industry bosses said it is “heartbreaking” and highlighted the need for supportive tax measures from the Treasury in the autumn budget.
Official Government statistics show 209 pubs were demolished or converted for other uses over the six months to June.
The data, which was analysed by commercial real estate specialists at Ryan, show the overall number of pubs in England and Wales, including those vacant and being offered to let, fell to 38,780.
It means 2,283 pubs have vanished from communities across England and Wales forever since the start of 2020.
Valuation Office Agency data shows many of these have been demolished or converted into homes, offices or other uses such as day nurseries.
The South East was hit hardest in the first half of 2025, losing 31 pubs in just six months, according to the data.
The closures come amid an intensifying backdrop for UK pubs, which were impacted by increases to the national minimum wage, national insurance payments and business rates payments.
In April, the national living wage rose by 6.7 per cent to £12.21 an hour for workers aged 21 and older.
At the same time, the Government increased the rate of employer national insurance contributions from 13.8 per cent to 15 per cent and also lowered the threshold at which firms would pay the tax.
Many pubs were also hit by changes to discounts on business rates, the property tax affecting high street businesses.
Hospitality businesses received a 60 per cent discount on their business rates bills up to a cap of £110,000 but saw this cut to only 25 per cent in April.
Industry bosses had warned the jump in taxes particularly would lead to an acceleration in pub closures.
Emma McClarkin, chief executive of the British Beer and Pub Association, said the Government needs to act quickly to save pubs across the country.
She said: “It’s absolutely heartbreaking and there is a direct link between pubs closing for good and the huge jump in costs they have just endured.
“Pubs and brewers are important employers, drivers of economic growth, but are also really valuable to local communities across the country and have real social value.
“This is a really sad pattern, and unfortunately a lot of these pubs never come back.
“The Government needs to act at the budget, with major reforms to business rates and beer duty.”
Alex Probyn, practice leader of property tax at Ryan, warned the squeeze on the pub trade is intensifying.
He said: “Slashing business rates relief for pubs from 75 per cent to 40 per cent this year has landed the sector with an extra £215 million in tax bills.
“For a small pub, that’s a leap in the average bill from £3,938 to £9,451 – a 140 per cent increase.
“The combination of soaring business rates, higher national insurance contributions, the rising national minimum wage and packaging taxes are all quietly draining profits until staying open becomes impossible.
“When that happens, developers are quick to snap up the plots for more lucrative uses.”
By Henry Saker-Clark, PA Deputy Business Editor