Britain Set To Lose One Pub A Day In 2025 Amid Soaring Beer Prices

The British Beer and Pub Association (BBPA) has issued a warning, reporting that roughly one pub will close down everyday this year. This is driven largely due to rising beer prices and escalating operating costs.

The BPPA represents more than 20,000 of the estimated 45,000 pubs in the UK. The trade association expects 378 to close this year in England, Scotland, and Wales, which will cost 5,600 jobs.

For reference, 350 pubs closed down in 2024. This continues a path that has pushed more than 15,000 pubs to shut down since the year 2000. Notably though, the BPPA said that 'it's not too late' for the government to solve the issue.

Here's what they've had to say about the matter so far.

State of Pubs In The UK

BBPA Chief Executive Emma McClarkin had the following to say about the state of pubs in the UK. 'Pubs are trading well but most of the money that goes into the till goes straight back out in bills and taxes. For many, it's impossible to make a profit, which all too often leads to pubs turning off the lights for the last time.

However, it's not too late to change this sad state of affairs. We know the government recognises the economic and social value of pubs and we're not asking for special treatment, we just want the sector's rich potential unleashed.'

The BBPA then urged the government to proceed with meaningful business rates reform, mitigating the employment and Extended Producer Responsibility (EPR) costs, and cutting beer duty.

The sector is butting heads with a barrage of extra taxes and fees that follow the April cliff-edge. This has cost the industry an extra £853 million ($1.1 billion).

The effect of the tax increases are also trickling down to other industries with various effects. For example, the BBPA revealed that the average price of a pint exceeded £5 ($7) for the first time in March.

Aside from pubs, it will affect those who are part of the supply chain. This involves farmers, brewers, and other industries who make up the sector's wider ecosystem.

Proposed Solutions

Among solutions shared by the BBPA start by reducing the cumulative tax and regulatory burden. This helps more pubs stay open, translating into more investments and jobs.

In turn, this would protect spaces that are seen, by many communities, as the only places left to gather. A closed pub does not only put people out of a job, but also takes away from their built communities. This would hurt the local economy, with hospitality and even tourism among the other affected sectors.

Other Concerned Parties

In a select committee hearing on Wednesday, hospitality figures also raised their concerns about soaring energy costs. Admiral Taverns Commercial Director David Wigham runs more than 1,600 pubs in the UK.

He said that the costs to keep his establishments have risen to double the level. This is even prior to the energy crisis that occurred from Russia's invasion of Ukraine.

Federation of Small Businesses Policy Director Paul Wilson also said that the hospitality industry was particularly vulnerable to the energy bills. This is due to customer resistance because of increased prices and low levels of energy efficiency across the sector.