The sector warned that tax changes could lead to more closures
New figures suggest two pubs are closing every day (Image: PA)
New figures have revealed around two pubs across Britain closed every day between January and March this year. The British Beer and Pub Association (BBPA) suggests a large number of the closures are “avoidable”, but says taxes and immense costs are forcing many to shut their doors.
According to BBPA figures, 161 pubs across Britain closed in the first quarter of this year. This represents a 26% jump in the number of pub closures compared with the same period last year.
The British Beer and Pub Association (BBPA) said this equates to the loss of around 2,400 jobs within the industry. The association also warned these closures are particularly hitting younger workers.
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The Government announced business rates support for pubs earlier this year and last month a 15% tax relief for pubs and music venues came into effect, following warnings from the sector that further tax changes could lead to more closures and job losses. However pubs will still face a number of increased business costs as a result of measures announced in last November’s budget, such as an increase in minimum wage.
In light of the latest pub closure figures, the BBPA is now calling for longer-term changes to business rates and a wider overhaul of taxes on the hospitality sector.
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.
“This underscores why Government’s business rates relief was so necessary, and the support such a welcome relief. We want to work with Government to establish a permanent long-term plan that will deliver permanently lower bills, a fairer system and ultimately protect this treasured sector.”
In the first three months of the year 161 pubs closed across Britain, according to the BBPA(Image: PA)
The calls for change come after 336 pubs closed last year across Britain. This means more than 2,000 pubs have closed since the outbreak of the coronavirus pandemic in 2020.
Neema Rai, spokeswoman for the group and co-founder of Westminster-based Tamesis Dock and the Battersea Barge, said: “Pubs have been hit hard in recent years and we’ve just been hit by yet another excise duty hike. Spirits offer higher profit margins and help keep us afloat, yet we have the highest rate of excise duty in the G7.
“The Government needs to carry out a proper review of excise duty if it’s serious about supporting hospitality because we’re fighting for our very survival.”
A Government spokesperson said: “We are backing Britain’s pubs – cutting April’s business rates bills by 15% followed by a two-year freeze, extending World Cup opening hours and increasing the Hospitality Support Fund to £10 million to help venues grow. Later this year, we’ll also build on our Pride in Place programme with our new High Streets Strategy to revitalise our town centres.
“This comes on top of capping corporation tax, cutting alcohol duty on draught pints and six cuts in interest rates, benefiting businesses in every part of Britain.”
In the latest data on pub numbers across Britain, almost every region, including the North West, reported a loss of pubs. Wales was the only part of Great Britain to report a rise in pub numbers in the latest data, while Scotland witnessed the heaviest fall in numbers.
Pub closures in each British regionEast of England, 16 closures to 3,682 pubsWest Midlands, 11 closures to 3,910 pubsSouth West, 13 closures to 4,582 pubsNorth West, 18 closures to 5,145 pubsYorkshire and The Humber, 10 closures to 4,235 pubsSouth East, 26 closures to 5,643 pubsLondon, 17 closures to 3,432 pubsNorth East, 2 closures to 1,926 pubsEast Midlands, 10 closures to 3,579 pubsWales, 3 pubs gained to 2,901 pubsScotland, 41 closures to 4,188 pubs