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Retail & Consumer

º£½ÇÊÓÆµ pub closures in first half of 2025 'heartbreaking' as cost pressures bite

A combination of rising costs and tax hikes are taking their toll on the sector

Friends drinking beer in a pub(Image: Getty Images)

Eight pubs a week have permanently closed across the º£½ÇÊÓÆµ during the first half of the year as rising tax and labour costs take their toll, new data reveals.

Industry leaders described the situation as "heartbreaking" and emphasised the urgent need for supportive tax measures from the Treasury in the autumn budget.

Official Government statistics reveal that 209 pubs were either demolished or converted for alternative purposes during the six months leading up to June.

The figures, examined by commercial property experts at Ryan, demonstrate that the total number of pubs in England and Wales, including vacant properties available for lease, dropped to 38,780.

This means 2,283 pubs have disappeared permanently from communities throughout England and Wales since early 2020, as reported by .

Valuation Office Agency records indicate many of these establishments have been demolished or transformed into residential properties, offices or alternative facilities such as nurseries.

The South East bore the brunt of the closures in the first half of 2025, with 31 pubs shutting down within just six months, the data shows.

These closures occur against an increasingly challenging environment for º£½ÇÊÓÆµ pubs, which have been affected by rises in the national minimum wage, national insurance contributions and business rates.