More than 50 pubs a month on average were lost in England and Wales during the first half of 2024, according to new analysis of Government data. Real estate intelligence firm Altus Group stated that the overall number of pubs, including those which were vacant or being offered to let, fell to 39,096 at the end of June. This figure is down by 305 compared to the end of 2023, with the affected pubs either closing down, being demolished, or transformed into something else.
Interestingly, some pubs have been converted into other types of use such as homes, offices, or even day nurseries, showcasing the changing landscape of the hospitality industry. The north-west of England reported the loss of 46 pubs, the highest of any region, in the first half of 2024. Additionally, a total of 472 pubs shut down permanently during the financial year from April 1, 2023, to March 31, 2024.
Pubs and restaurants faced challenges during 2020 and 2021 when they were forced to close for extended periods due to Covid-19 lockdowns. Subsequently, in 2022 and 2023, the industry grappled with soaring inflation leading to increased operating costs, while the cost-of-living crisis hindered sales. The industry has been advocating for reforms to business rates as a way to address these issues. Presently, pubs benefit from a 75% discount on business rates, set to end in March 2025.
Alex Probyn, president of property tax at Altus Group, cautioned about a potential “double whammy” of property tax hikes for pubs next April. He urged Chancellor Rachel Reeves to extend the business rates relief in the upcoming autumn Budget on October 30. A spokesperson for the British Beer and Pub Association emphasised the significant economic and societal contribution of pubs, calling for measures to support their viability.
Pubs currently make an average profit of 12p on every pint of beer after deductions for taxes and costs. There are concerns within the industry regarding potential plans to ban outdoor smoking, including in beer gardens and outside stadiums, with some advocating for the necessity to maintain this aspect of the pub experience. In August, Sir Keir Starmer indicated that the Government would assess the possibility of an outdoor smoking ban to address public health concerns.
The challenging landscape faced by pubs continues to evolve amidst ongoing closures and transformations within the industry. As stakeholders and policymakers navigate these turbulent times, the future of traditional pubs remains uncertain, sparking debates on how to preserve these cultural establishments for generations to come.