Two UK pubs to close every DAY in the first quarter of 2026 after facing ‘the enormous weight’ of tax rises – meaning a loss of 2,400 jobs

Two British pubs closed every day in the first quarter of this year as businesses struggle to cope with the ‘massive weight’ of tax rises, new industry figures show.

The closures have resulted in the loss of about 2,400 jobs, mostly for younger workers.

Figures from the British Beer and Pub Association (BBPA) show that 161 pubs closed in Britain between January and March.

It represents an increase of 26 per cent compared to the same period last year, when 128 pubs closed.

A total of 336 British pubs will close by 2025 and more than 2,000 have closed in the past five years.

The BBPA has warned that VAT costs, the increase in social insurance for employers and beer excise duties are placing a huge burden on entrepreneurs.

London and the south-east of England suffered the most closures, while Wales was the only part of Britain to see a net increase in the number of pubs: by three.

Earlier this year the government announced a U-turn on business rates increases for pubs, offering a 15 per cent tax break for pubs and music venues.

It was a move welcomed by landowners, but they warned that more needed to be done to save the struggling industry from disaster.

Emma McClarkin, chief executive of the British Beer and Pub Association, said: ‘The scale of these closures is avoidable because pubs are doing a brisk trade but their profits are being wiped out by a disproportionate tax burden and huge costs.

‘For too many people, the sheer weight of taxes and regulatory costs has forced them to remain silent, which will only impact communities, workers and the wider economy.

‘This underlines why the Government’s business rates cut was so necessary, and the support such welcome relief.

‘We want to work with the government to deliver a permanent, long-term plan that will deliver permanently lower bills, a fairer system and ultimately protect this cherished sector. This means more people in jobs, valuable community spaces protected, vibrant high streets and more investment and growth.”

The BBPA said the sector injects more than £34 billion into the economy and supports more than a million jobs, half of which are made up of 16-24 year olds.

It follows reports that the price of a pint of beer in London has breached the £10 mark for the first time.

Drinkers must pay £11 for a pint of Moretti or Heineken at Stanley’s rooftop bar in Mayfair; while a 33cl bottle of Noam lager or Curios IPA costs £10.50 at the Connaught bar.

But Michael Kill, chief executive of the Night Time Industries Association, said today that the ‘reality behind rising pint prices in London is far more complex than a headline figure’.

He told the Mail: ‘While consumers are understandably shocked at the prospect of £10 pints, these prices reflect the intense and unsustainable cost pressures facing venues across the capital.

‘Businesses are struggling with rising energy bills, rising wages, higher alcohol duties and heavy regulatory pressure, all of which are putting pressure on already tight margins. What we see is not a profit motive, but a sector fighting for survival.

‘The night-time economy has already shrunk significantly in recent years, with closures and fewer visitors due to the cost of living and changing consumer habits.

‘Without meaningful government action to reduce the cost of doing business, these price rises risk becoming the norm and ultimately impacting the accessibility, culture and long-term viability of Britain’s nightlife.’

Meanwhile, in Kent, an 1890s village pub closed after rising costs and overwhelming overheads became too much for its owners.

The Brown Trout in Lamberhurst, Kent, closed its doors for the final time on February 1.

The owners said: ‘We’ve tried so hard to make it work, but rising costs and overwhelming overheads mean pubs are facing an increasingly uncertain future. Thank you from the bottom of our hearts to those who really supported us, you know who you are

The owner of The Brown Trout appealed to locals to ‘support local pubs’, stressing it is ‘use it or lose it’.

The UK Spirits Alliance, which represents hundreds of distillers across Britain, has urged the government to carry out a ‘proper review’ of duty as the hospitality industry ‘fights for our survival’.

Neema Rai, spokeswoman for the group and co-founder of Westminster-based Tamesis Dock and Battersea Barge, said: “Pubs have been hit hard in recent years and we have just been hit with yet another duty increase.

‘Spirits offer higher profit margins and help us stay afloat, yet we have the highest duty rate in the G7.

“The government needs to undertake a proper review of excise duties if it is serious about supporting the hospitality industry, because we are fighting for our survival.”

Earlier this year, pub owners told the Mail how they are already facing closure and having sleepless nights over figures that ‘just don’t add up’.

They criticized a range of government measures, including the increase in employers’ national insurance contributions and the increase in the minimum wage, as well as the increase in business rates, saying current tax levels are simply unsustainable.

Many called for a reduction in VAT, arguing that the UK rate is one of the highest in all of Europe.

Simon Delaney, 60, who runs The Firbank Pub and Kitchen in Wythenshawe, Manchester, told the Mail that the sector was in a ‘real mess’ even before the last budget.

Mr Delaney, who has been in the industry for four decades, said he has seen his business go from “a very good profit” to “no profit at all” since the pandemic.

“Now we’re just focused on keeping the business going, keeping our 20 people employed and continuing to serve the community,” he said. “What we can’t do is run a business if it’s constantly making losses.”

Mr Delaney continued: “It’s not just about the increase in business rates, it’s about the increase in the national minimum wage and the increase in national insurance. An increase in real terms means an increase in our wage bill of £300 per week.

“We have a government that has broken every promise it made from day one. If you’re not making any profit at all, where does that come from?

‘I have sleepless nights where I just don’t know what to do.

‘If the government makes a U-turn that would be great, but it won’t be enough to stop pubs closing at an alarming rate. If I was younger, if I had a mortgage, I would have to end it.

“If at some point you continue to tax everything, there will be no more money and that company will go under.”

Andy Lennox, who runs The Old Thatch in Wimborne, Dorset, as part of a company that oversees several pubs and restaurants, banned Labor MPs from his venues in anger.

He is one of the landlords behind the campaign, in which around 1,500 publicans have excluded parliamentarians. He has previously said he and other pub owners could go on strike if the Government does not act to support the industry.

He told the Daily Mail: ‘We are waiting for the details on the reversal of the rent reduction, we have had no details at all so far.

‘The most important thing is that it should apply to all catering establishments and not just cafes. What [the government] what I will do is after this turnaround they will come back and say we have given you a huge support package.

‘Eliminating a bill that we are not yet paying is not support for landlords. “Reversing rates just removes a tax increase that we can’t afford, but we can’t afford to pay current taxes anyway.”

Accusing Labor of ‘utter incompetence’, he added: ‘The first budget cost my company £350,000 and we have cut it down to the bare bones.

“My business is absolutely in danger. I’ve been in the industry for twenty years, I know what I’m doing, I’m pretty good at what I do and I can’t make it work, I can’t make the numbers add up, they just don’t do that anymore.

‘In 2017 we made about 15 percent profit. I think we got that down to about 4 percent.”

Speaking in January, chairman of the Night Time Industries Association Sacha Lord, who advised Mayor of Greater Manchester Andy Burnham, warned that the government is doing more damage to the hospitality industry than Covid.

‘I looked at the budget and… [Rachel Reeves] “I stood there and said we have listened to hospitality and we are going to reform business rates,” he said.

“An hour later, people started looking at their numbers and saying this was unsustainable.”

He continued: “This Labor government has been worse for pubs than the pandemic. They needed our support during the general election.

“We have been told that business rates are unfair, we are going to reform them in favor of the hospitality industry. We were told they would reduce our bills and draw attention to Amazon, the parcel service and large warehouses.

“They’ve done the exact opposite.”

A Government spokesperson said: ‘We are supporting Britain’s pubs by cutting business rates by 15% in April, followed by a two-year freeze, extending World Cup opening hours and increasing the Hospitality Support Fund to £10m to help venues grow. Later this year we will also build on our Pride in Place program with our new High Streets Strategy to breathe new life into our town centres.

‘This is in addition to capping corporation tax, cutting alcohol duty on draft beers and six cuts to interest rates, which will benefit businesses in all parts of Britain.’