More than 2,000 pubs have vanished since the start of the pandemic, with new figures showing a 26% rise in closures in the first three months of this year. Industry bodies blame crushing tax burdens and regulatory costs, as Scotland and the South East of England emerge as the worst-hit regions.
Worst-hit regions: Scotland leads the losses
The number of pub closures in the first quarter rose by 26% compared with the same period last year, according to the latest industry data. The overall trend remains negative: over the past year, the pub network shrank by 336 outlets, falling to 44,656. Since the start of the pandemic in 2020, the UK has lost more than 2,000 pubs.
Scotland recorded the highest number of losses, with 41 establishments closing, leaving a total of 4,188 pubs. In the South East of England, 26 pubs ceased trading (5,643 remaining), while the North West lost 18 (5,145 remaining). London saw 17 closures (3,432 remaining), the East of England lost 16 (3,682 remaining), and the South West 13 (4,582 remaining). The West Midlands lost 11 pubs (3,910 remaining), Yorkshire and the Humber 10 (4,235 remaining), and the East Midlands 10 (3,579 remaining). The North East recorded the smallest decline, with just two closures (1,926 remaining). Wales was the only region to show positive growth, with three new openings bringing its total to 2,901 pubs.
Why pubs are shutting down
Industry experts point to a combination of factors: rising taxes, increasing regulatory compliance costs, a more expensive workforce, and more cautious consumer spending. A sharp rise in costs for pubs and breweries was triggered by last November’s Budget, which included an increase in the National Living Wage.
Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), believes the scale of closures could have been avoided. She said that while pub trade remained active, profits were being “wiped out by disproportionate tax burdens and enormous costs.” According to McClarkin, the “colossal weight of taxes and regulatory costs” was forcing owners to shut down, damaging communities, workers and the wider economy.
Spirits industry warning: “Fighting for survival”
The spirits industry shares these concerns. Nami Rai, a representative of the UK Spirits Alliance and co-founder of the Tamesis Dock and Battersea Barge pubs, said the hospitality sector was “fighting for its very survival.”
Spirits traditionally offer higher margins and help keep businesses afloat, but the UK pays the highest spirits duty among G7 nations. The alliance has formally called on the government to conduct a “proper review” of the duty.
Government response: Tax cuts and a new High Streets Strategy
The government has already responded to industry warnings. Earlier this year, ministers announced support measures on business rates after the sector warned of a fresh wave of closures. Last month, a 15% tax relief for pubs and music venues came into effect.
A Cabinet spokesperson stressed that the government was actively backing British pubs. In addition to a 15% cut in business rates bills in April and a two-year freeze on multipliers, the government extended trading hours during the World Cup and increased the Hospitality Sector Support Fund to £10 million. Later this year, a new High Streets Strategy will be rolled out under the Pride in Place programme. Authorities also pointed to the cap on corporation tax, a cut in draught beer duty, and six reductions in interest rates.
Meanwhile, major industry players are taking their own steps. Heineken has granted financial support to nearly 650 pubs and announced £44.5 million in investment to upgrade venues and test a new, modern pub model.
