British pubs are closing at a rate of nearly two per day in 2026, with 161 establishments shutting down in the first quarter alone—a 26% increase from the previous year. Major corporate restructurings, such as Whitbread closing all remaining Beefeater and Brewers Fayre branded pub-restaurants by September 2026, are accelerating the high street crisis. [1, 2]
Reasons for closures:- Harsh conditions in the hospitality . The BBPA (British Beer & Pub Assoc) attributes closures to rising labour costs, increased taxation, and cautious consumer spending. Emma McClarkin, chief executive of the BBPA, said: “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.”
The autumn 2024 Budget added an estimated £650 million in additional costs across the sector through increases to employer National Insurance contributions, minimum wage obligations, and a cut in business rates relief from 75% to 40%. The government introduced a 15% business rates relief for pubs and music venues in April 2026, but industry bodies are pressing for a longer-term overhaul. For every three pounds spent in a pub, one goes directly to the tax man. The scale of the cost increases bearing down on pubs in the last 18 months has left many operators unable to stay profitable even while trade held up. The 2025 Autumn Budget landed an estimated £322.5 million in additional employment costs on the hospitality sector, according to the BBPA. That was on top of changes to employer National Insurance contributions that had already come into force in April 2025, and before the 4.1% increase to the National Living Wage in April 2026, rising from £12.21 to £12.71 per hour.
Business rates have been a source of particular friction. The 40% retail, hospitality and leisure relief that cushioned many pubs’ bills throughout 2025-26 was discontinued on 31 March 2026 and replaced with new lower business rates multipliers for hospitality properties, now set permanently in law. Pubs also receive an additional 15% discount off their bills, but only for the 2026/27 financial year, with no commitment beyond that. The CEO of BBPA McClarkin has called on the government to “move beyond sticking plasters”, adding that without a permanent, long-term commitment to business rates reform, closures will continue at this pace.
The southwest has seen 13 Pub closures in the first quarter with 4,582 remaining and although, small consolation, the South West is doing better than any other area in the UK eg Scotland saw triple the no of closures (41) with 4,188 pubs remaining. Closer to us we have seen the Farmers Arms take drastic action (closing for the winter) and the Chapel in Cotford St Luke close permanently.
If you add in Hotels and restaurants the sector is doing extremely badly. Analysis of the sector shows the scale of potential closures and forecasts that 963 restaurants, 574 hotels and 540 pubs would be set to close this year, if the Government doesn’t introduce a hospitality-wide solution to avert significant business rates increases in April. Currently, the average hotel will see their business rates increase by £28,900 next year and by £205,200 in total over the next three years – an increase of 115%. The average pub will see their rates increase 15% next year – an extra £1,400 – and by 76% over the next three years – an increase of £12,900.
What the Government has offered, and what the sector says it needs
The industry’s specific asks are clear: a permanent hospitality-specific business rates multiplier rather than year-by-year relief; a review of the employer NIC threshold changes as they apply to the part-time workers who make up a disproportionate share of pub workforces, and a sector-specific impact assessment of the guaranteed hours provisions before they take full effect.
The Government’s response so far has been to make permanently lower business rates for hospitality properties a matter of law, and to add a 15% pub-specific discount for 2026/27. The BBPA’s position is that the cumulative gap between what has been offered and what the sector needs to arrest the closure rate remains significant. At the current pace, the UK is on course to lose another 400 pubs before the year is out. Whether the next Budget treats that as an emergency or accepts it as a trend may determine whether many of them ever reopen.
Bleak news indeed for pubs but whilst the New Inn is most often busy, the message from us is that whilst we are currently seeing our business thriving and trade holding up well, it is a constant struggle to ensure that we are able to pay our wages, rates and other costs, assuring we don’t make a loss so we become insolvent. We need the government to help the sector somehow. If you value coming to us then please contact your local MP or councillor and make a plea on our behalf.
MP
London
SW1A 0AA