Eight pubs a week have permanently closed across the UK during the first half of the year as rising tax and labour costs take their toll, new data reveals.
Industry leaders described the situation as “heartbreaking” and emphasised the urgent need for supportive tax measures from the Treasury in the autumn budget.
Official Government statistics reveal that 209 pubs were either demolished or converted for alternative purposes during the six months leading up to June.
The figures, examined by commercial property experts at Ryan, demonstrate that the total number of pubs in England and Wales, including vacant properties available for lease, dropped to 38,780.
This means 2,283 pubs have disappeared permanently from communities throughout England and Wales since early 2020, as reported by City AM.
Valuation Office Agency records indicate many of these establishments have been demolished or transformed into residential properties, offices or alternative facilities such as nurseries.
The South East bore the brunt of the closures in the first half of 2025, with 31 pubs shutting down within just six months, the data shows.
These closures occur against an increasingly challenging environment for UK pubs, which have been affected by rises in the national minimum wage, national insurance contributions and business rates.
In April, the national living wage increased by 6.7% to £12.21 per hour for employees aged 21 and above.
Simultaneously, the Government raised employer national insurance contribution rates from 13.8% to 15% whilst also reducing the threshold at which businesses must pay the levy.
Many pubs have also been impacted by alterations to business rates discounts, the property tax that affects high street businesses.
Hospitality firms previously enjoyed a 60% discount on their business rates bills up to a cap of £110,000, but this was reduced to just 25% in April.
Industry leaders had cautioned that the surge in taxes would particularly result in an increase in pub closures.
Emma McClarkin, Chief Executive of the British Beer and Pub Association, emphasised the need for swift government action to rescue pubs nationwide.
She said: “It’s absolutely heartbreaking and there is a direct link between pubs closing for good and the huge jump in costs they have just endured.
“Pubs and brewers are important employers, drivers of economic growth, but are also really valuable to local communities across the country and have real social value.
“This is a really sad pattern, and unfortunately a lot of these pubs never come back. The Government needs to act at the budget, with major reforms to business rates and beer duty.”
Alex Probyn, practice leader of Property Tax at Ryan, said the pressure on the pub industry was escalating.
“Slashing business rates relief for pubs from 75% to 40% this year has landed the sector with an extra £215m in tax bills,” he added.
“For a small pub, that’s a leap in the average bill from £3,938 to £9,451 – a 140% increase. The combination of soaring business rates, higher national insurance contributions, the rising national minimum wage and packaging taxes are all quietly draining profits until staying open becomes impossible.
“When that happens, developers are quick to snap up the plots for more lucrative uses.”
