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In England and Wales, an average of 50 pubs have permanently closed each month during the first half of this year, according to recent figures released by real estate intelligence firm Altus. In total, 305 pubs have shut their doors, leaving the country with 39,096 remaining establishments. While this number is lower than the average of 64 closures per month observed in the same period of 2023, Altus cautioned that the industry is facing significant challenges ahead, particularly with tax hikes anticipated next year.
Alex Probyn, president of property tax at Altus, highlighted that pubs are facing a “double whammy” of increased costs alongside the reintroduction of business rates starting next April. These rates had been temporarily reduced since the pandemic began in 2020, providing some financial relief to the struggling sector. However, with the planned removal of a 75% relief on business rates, the industry could be facing an enormous bill of approximately £928 million.
The impact of these higher taxes is projected to significantly affect pub finances, with each establishment potentially facing an average increase of £12,160 in costs next year. Such financial strain could lead to further closures, compounding the existing issues within the hospitality sector.
Industry body UKHospitality has expressed concern over the rising financial pressures, emphasizing the need for supportive measures to help pubs survive in a challenging economic climate. Many establishments are still recovering from the impacts of the pandemic, and the combination of tax increases and ongoing operational challenges could hinder their ability to remain viable.
As pubs continue to navigate these turbulent waters, the focus remains on the need for strategic adaptations and support from local governments and industry bodies. Without intervention, the risk of further closures looms large, threatening the cultural and social fabric that pubs contribute to communities across England and Wales.
The situation remains precarious, with operators grappling not only with the immediate financial implications of tax increases but also with longer-term sustainability in a highly competitive market. The challenges ahead will require resilience and innovation as the pub industry seeks to redefine itself and continue serving customers in an evolving landscape.
