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One Pub a Day Closed in 2025 as Industry Braces for Business Rates Jump

Trade bodies argue the Budget’s phase‑out of sector relief will expose pubs to revaluation‑driven bill increases despite a £4.3bn Treasury package.

Overview

  • Analysis of official data by tax firm Ryan found 366 pubs were demolished or converted in the year to December, reducing the England and Wales total to 38,623.
  • Average pub rateable values are set to rise by about 30% from April 2026, and operators report price hikes, shorter hours and some immediate closures as costs mount.
  • Pub is the Hub, founded by King Charles, and six other groups have written to the Chancellor calling the changes damaging and urging retention of hospitality rates relief, claiming community pubs face far larger increases than warehouses.
  • Grassroots pushback has intensified, with hundreds of venues banning Labour MPs after the Autumn Budget and several landlords publicly linking closures to rising taxes and wage and NI pressures.
  • The Treasury defends the reforms, citing a three‑year transition and £4.3bn of support it says will limit bill increases from April to about 4% rather than 45%, though UKHospitality estimates the average pub will still pay roughly £1,400 more.