Over 50 pubs on average closed every month in England and Wales during the first half of 2024, according to analysis by real estate intelligence firm Altus Group. The total number of pubs, including vacant or available for rent, dropped to 39,096 by June. This marks a decrease of 305 from the end of 2023, with closures due to shutdowns, demolition, or repurposing. The north west of England was the hardest hit region, losing 46 pubs during this period.
In the financial year from April 1, 2023, to March 31, 2024, a total of 472 pubs shut down permanently. The industry faced challenges due to Covid-19 lockdowns in 2020 and 2021, followed by rising operating costs and a sales dip from the cost-of-living crisis in 2022 and 2023. Business rates have been a central concern, with pubs currently enjoying a 75% tax discount set to expire in March 2025.
Altus Group’s Alex Probyn urged Chancellor Rachel Reeves to extend the business rates relief in the upcoming Budget and highlighted potential significant tax hikes facing pubs next year. The British Beer and Pub Association emphasised the vital economic and social role of pubs, calling for beer duty cuts and business rates reform to support their survival.
Pubs face an average profit margin of 12p per pint, considering taxes and expenses. Concerns have been raised in the industry regarding potential outdoor smoking bans, including in beer gardens and at stadiums. In August, Sir Keir Starmer mentioned the government’s consideration of such restrictions to reduce preventable deaths and ease NHS pressures.