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50 pubs closed each month in the first half of year
305 pubs were forced to close in the first six months of the year, according to analysis from property intelligence company Altus.
The analysis showed that number of pubs in England and Wales fell to 39,096 at the end of June with industry experts warning that tax rises in 2025 could result in further closures across the industry.
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.
Altus Group president of property tax Alex Probyn told national press that more pubs could be forced to close next year due to extra costs linked to inflation and the removal of business rates relief.
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.”
According to a spokesperson for the British Beer and Pub Association (BBPA): “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.”
The analysis by Altus additionally identified how the north-west of England was the worst hit, with 46 pubs closing during the six-month period.
Meanwhile, the south-west and the East Midlands were reportedly the areas with the next highest closures, with 37 each, while Wales had the fewest closures at 15.
Reports have suggested that the chancellor, Rachel Reeves, is also due to be considering raising alcohol duty in next month’s budget in a bid to make up what has been said to be a £22bn hole in public finances. This move will however be damaging for the wine and spirits sector which last year already dealt with its largest single duty increase in 50 years.
Figures from HM Revenue and Customs last week revealed there had been a £1.3 billion drop in alcohol duty receipts in the 12 months up to the end of August, which the Wine and Spirit Trade Association (WSTA) has said was caused by the higher duties.
WSTA chief executive Miles Beale added: “Last year’s damaging reforms to the alcohol excise duty system, including the largest single duty hike in almost 50 years, have hit businesses, consumers and the government purse. Prices have risen, sales are down, and so is duty income by over £1.3bn.”
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.
This week, the British government is also being asked to save the beer and pub sector which contributes £34.3 billion to the UK economy annually, supporting over one million jobs. Yet, to amplify the sector’s troubles, the UK Government is considering an extension of the smoking ban to open-air spaces including small parks, outside nightclubs, and even pub beer gardens – a move that Night Time Industries Association (NTIA) CEO Michael Kill shas said could “significantly impact their lifestyle choices and the businesses that serve them”.
Similarly, UKHospitality chief executive Kate Nichols also insisted that “the government must embark on a full and detailed conversation with affected parties on the impact of such a ban before any legislation is laid”.
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