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Tax and Minimum Wage Hikes Push One in Five UK Pubs Into Insolvency

Trade figures show that pubs are surrendering nearly two weeks of turnover each year to recent cost rises.

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Overview

  • Price Bailey data reveal that 21% of UK pubs are technically insolvent, leaving them highly vulnerable to collapse.
  • Accountants recorded 67 pub closures in April, the highest monthly total since July 2024.
  • The British Beer and Pub Association estimates that hikes in employer national insurance, business rates, packaging charges, and the National Living Wage have added about £14,000 in costs per pub.
  • The average price of a pint is projected to increase by 21p, pushing the national average above £5 for the first time.
  • Industry bodies have urged the government to accelerate promised business rates reform and introduce relief for rising labour costs ahead of a pending interim report this summer.