Two pubs closing every day after 'sheer weight' of tax rises

Around two pubs closed each day in the first three months of the year, new industry figures suggest.

The British Beer and Pub Association (BBPA) said 161 had shut their doors for good in that period, equating to about 2,400 job losses. It's also a 26% jump on the same time last year.

The body blamed tax increases and rising labour costs, including the increase to the minimum wage.

Wales was the only part of the UK which saw a net gain in its number of pubs – rising by three to 2,901.

Rachel Reeves had been warned measures she unveiled in her budget last November would put pubs at risk, and months later she announced they would receive business rates support to help them cope.

But the BBPA said more needed to be done to save Britain's pubs and, in the meantime, will be hoping this summer's World Cup – with longer opening hours – will give them a much-needed boost.

Chief executive Emma McClarkin said even pubs doing good trade were having their profits "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," she warned.

The UK Spirits Alliance, which represents hundreds of distillers across Britain, urged the government to carry out a "proper review" of excise duty.

"Spirits offer higher profit margins and help keep us afloat, yet we have the highest rate of excise duty in the G7," a spokesperson said.

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The government insisted it was backing the sector and indicated there was more support to come as part of its programme for revitalising town centres.

"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 £10m to help venues grow," it said.

It also pointed to a cut to alcohol duty on draught pints, a cap on corporation tax and cuts to interest rates, but there are fears there could be hikes ahead due to the war in Iran.

(c) Sky News 2026: Two pubs closing every day after 'sheer weight' of tax rises