Pubs face £650m blow from Rachel Reeves’s Budget as 300 pubs forced to close amid rising costs

Nigel Farage weighs in on Rachel Reeves growth plans
GB News
Harry  Fairclough

By Harry Fairclough


Published: 17/02/2025

- 13:27

BBPA has called for Reeves to put an end to the 'completely avoidable' closures

Almost 300 pubs were forced to close last year amid rising costs in the industry, new figures have shown.

Official industry figures have revealed the number of pubs across the UK has dropped by 25 per cent over the last 25 years, with around six pubs closing their doors every week.


The British Beer and Pub Association (BBPA) has called for Chancellor Rachel Reeves to put an end to the “completely avoidable” closures.

The trade body has warned that the cumulative impacts of her October Budget will create an extra £650million in costs for the sector.

Rachel Reeves

Reeves drinks water as she gives a speech on economic growth in Oxford 3 weeks ago

PA

BBPA Chief Executive Emma McClarkin said: “The scale of these closures is completely avoidable because pubs are doing a brisk trade.

“Consumer demand is there, however, profits are being wiped out with sky high bills and pubs are facing yet more rates and costs come April.

“We’re right behind Labour’s mission to supercharge growth and can deliver this economic boost across the UK, but only if it is easier for pubs to keep their doors open.

“Government must urgently bring in meaningful business rates reform and phase in new employment costs so pubs can keep boosting the economy, supporting local jobs, and remaining at the heart of communities.”

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Despite Reeves announcing a “penny off the pint”, the industry has been hit with significant financial pressures including rises in interest rates and people choosing to spend less amid the cost of living.

It comes as younger generations continue to reduce their spending in UK pubs due to the financial burden and the loss of Britain’s “pub culture”.

A 2022 ‘U Going Out’ Survey showed that only 25 per cent of ‘Gen Z’ were interested in going on a night out.

Some 44 per cent of 18-24-year-olds occasionally or regularly order low-alcohol or alcohol-free drinks, according to Sky News.

The findings by the BBPA show that London lost the highest proportion of its pubs, with 34 closing down last year.

Closed Pub; Stock image of pub

Current figures show that the total number of pubs in the UK fell from 47,613 in 2019 to 45,345 pubs in 2024 (Stock Image)

Getty images

Current figures show that the total number of pubs in the UK fell from 47,613 in 2019 to 45,345 pubs in 2024.

Owing to the closures, job losses surged to 4,500 according to the industry figures.

Despite the closures, Labour has held firm to its commitment to support pubs and the hospitality sector.

A Government spokesman said: “Thriving pubs are often at the heart of our communities, and we’re taking action to support them by introducing a permanent, new lower business rate from 2026.

“More than half of all UK employers will either see a cut or no change in their National Insurance bills next year, and we’re doing more to support our high streets by tackling anti-social behaviour and empty properties.”