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Over 200 British Pubs Shut in First Half of 2025 as Tax and Wage Bills Soar

Trade bodies warn that cuts to rates relief alongside hikes in labour taxes demand targeted Budget support

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Overview

  • Valuation Office Agency figures show 209 pubs were demolished or converted for other uses in the six months to June 2025, averaging eight closures each week.
  • The total number of pubs in England and Wales has declined to 38,780, marking 2,283 permanent losses since 2020 and the South East registering the highest regional drop with 31 closures.
  • Policy changes in April raised the national living wage by 6.7% to £12.21, increased employer National Insurance to 15% with a lowered threshold, and cut hospitality business rates relief from 60% to 25%.
  • Ryan analysis indicates the reduction in rates relief has added £215 million in tax bills and driven average rates for small pubs from £3,938 to £9,451.
  • The British Beer and Pub Association and other trade bodies are calling on the Treasury to reform business rates, adjust beer duty and offset labour-tax rises in the autumn Budget to protect community pubs.