50 pubs a month ‘vanished’ for good from the English and Welsh communities that they once served calling last orders for the final time during the first 6 months of 2024.
Analysis of official Government data by the commercial real estate intelligence firm Altus Group, shows that the overall number of pubs in England and Wales, including those vacant and being offered to let, fell to 39,096 at the end of the first half of 2024 to 30th June down 305 compared with 39,401 at the end of 2023.
The data additionally highlighted how the total figure also included pubs that currently stood vacant and were being offered to let, which meant that the number of operational pubs was in fact even lower.
Altus outlined how pubs that once served communities have either been demolished and/or converted into homes and offices.
In the first half of 2023, 383 pubs also closed, the equivalent to 64 pubs closing every month, showing that the situation is dire.
The North West region of England lost 46 pubs, the most of any region, during the first half of 2024.
A total of 472 pubs called last orders for the final time during the whole of the financial year in the 12-months from 1st April 2023 to 31st March 2024
Pubs which have ‘vanished’ from the communities that they once served have either been demolished and/or converted into other types of use such as homes, offices or even day nurseries.
Alex Probyn, President of Property Tax at Altus Group, warned of a “double whammy” of property tax rises for pubs next April calling on the Chancellor to use her Autumn Budget on 30th October to act saying “the last thing pubs need is an average business rates hike of £12,160 next year through inflationary rises and the loss of the discount.”
Pubs, as with other eligible hospitality, leisure and retail businesses currently get a 75% discount off their business rates bills for the 2024/2025 tax year up to a cash cap of £110,00 per business but this is set to end on 31st March 2025.
Whilst business rates are also set to rise next April in line with September’s headline rate of inflation which, if unchanged from August, could also add an extra 2.2 % to bills next year.
Between 2020 and 2022, in response to the pandemic, hospitality businesses were given 100% business rates relief by the government, however this was then cut to 75% and will be removed from next April.
Probyn explained: “The last thing pubs need is an average business rates hike of £12,160 next year through inflationary rises and the loss of the discount.”
A spokesperson for the British Beer and Pub Association said: “While we know that brewers and pubs pour billions into the economy, their massive contribution to society is priceless which is why any closure is devastating. Government must use this Budget to cut beer duty, reform business rates, and maintain 75% business rates relief so that pubs can remain a home from home.”
Michael Kill, CEO of Night Time Industries Association:
“We had hoped the Bank of England would be confident enough to lower interest rates, but their decision to hold at 5%, coupled with inflation remaining stagnant, is another blow for night-time economy businesses.”
“Although inflation is steady, businesses won’t feel the benefit of any shift for months to come. This, along with the barrage of policy changes—ranging from employment rights to Martyn’s Law—and constantly shifting operating conditions, leaves our sector struggling to build a foundation to recover from.”
“With the Autumn budget approaching, the government must provide targeted support for SMEs and cultural businesses, including extending business rates relief and cutting VAT. While immediate action is critical, long-term reform is equally vital to ensure stability for the sector.”
“The message from the industry is clear: allow us to recover—we need stability. The night-time economy is a cornerstone of UK culture and the wider economy. The Chancellor must act now to protect businesses, jobs, and communities before it’s too late.”
Chancellor Rachel Reeves is considering increasing alcohol duties in next month’s Budget, according to media reports.
Ms Reeves has been presented with forecasts that show that putting up alcohol duty would raise an extra £800m next year.
However, the sector is now asking the government to freeze duty for at least two years to help in the recovery of sales across an industry that already faces myriad challenges.
Last month independent breweries called on the Labour Government to confirm that the new Alcohol Duty System will be reviewed after three years, as research shows its impact on the beer brewed by more than half of breweries.
The previous Government pledged that the changes would be fully considered in 2026. The Society of Independent Brewers and Associates (SIBA), that represents the UK’s small and independent brewers, asked the Government to commit to this deadline to ensure that the changes are properly evaluated.
Under the new system, Small Breweries Relief (SBR) – which helped small breweries to compete with Global breweries – was radically modified and extended to other products under a new Small Producer Relief. It also created a new Draught Relief where cask and keg beer destined for the pub is given a 9.2% reduction in alcohol duty.
The new alcohol structure is already having an impact on what small breweries are producing. Changes to the system meant that strong beers including Imperial Stouts and some Double IPAs are no longer eligible for relief. Research by SIBA shows that in response nearly a quarter (22%) of independent breweries have altered their beers above 8.5% ABV, with 7% reducing the ABV and 15% have either stopped producing some beers or all beers over 8.5% ABV.
It also introduced a new lower alcohol band at 3.4% ABV which gives a discount on duty to lower strength beers. Over a quarter (27%) of independent breweries have either introduced new beers (18%) or reduced the strength of their existing beers (7%) in response while several Global breweries have dropped the ABV of their beers, reducing their duty bill by millions of pounds.
While the new system aimed to remove distortions, Global cider producers also continue to benefit from a duty rate 46% of that on beer in the new system which is gives Global companies are unfair advantage.
“It’s important that the new system is fully reviewed after three years so that any distortions or issues are understood and addressed and I hope that the new Government will commit to this review in 2026.” Slee added.
