BBPA predicts one pub will close every day this year

One pub is anticipated to close every day this year, according to new figures from the British Beer and Pub Association (BBPA). 

The BBPA data which assesses more than 20,000 pubs across Britain, forecasts that 378 pubs will close this year across England, Wales, and Scotland. A number of hospitality business closures that would result in more than 5,600 people losing their jobs.

The BBPA has urged the government to step in and limit the damage by reforming the crippling business rates that are impacting the hospitality industry – one of the most highly taxed sectors in the UK.

According to the industry body, making reductions to both the cumulative tax and regulatory burden would also help more pubs stay open and protect pubs acting as community hubs for many residents.

BBPA chief executive Emma McClarkin said: “Pubs are trading well but most of the money that goes into the till goes straight back out in bills and taxes. For many, it’s impossible to make a profit, which all too often leads to pubs turning off the lights for the last time.”

McClarkin explained: “It’s not too late to change this sad state of affairs. We know government recognises the economic and social value of pubs, and we’re not asking for special treatment, we just want the sector’s rich potential unleashed.”

Pubs have also recently been hit by the increase in employers’ national insurance contributions (NICs) as well as new waste disposal rules that have pubs charged more for glass bottle recycling.

The news follows the revelation that the UK now also has 100 fewer breweries than a year ago despite strong demand.

The beer and pub sector contributes more than £34 billion each year towards the economy and supports more than a million jobs. However, the BBPA has implored that the government must remain committed to supporting the sector’s survival.

The BBPA highlighted how, for every £3 spent in a pub, £1 goes towards taxes and warned that if more pubs are closed then the impact will be felt by each industry within the supply chain, including farmers, brewers, and other industries connected to the prosperity of the sector.

McClarkin added: “We’re calling on government to proceed with meaningful business rates reform, mitigate these eye-watering new employment and EPR costs, and cut beer duty.”

Pub and beer business Adnams recently revealed it has been reducing its operating costs to bring its debt pile down while Stonegate Group, which operates more than 4,000 pubs and bars across the UK, is also rumoured to be planning a major restructure which could result in the loss of 150 jobs.

The British pub and beer sector is feeling the pinch right now, with evidence such as the price of a pint of beer in England, Wales and Scotland now costing 34p more than it did in February, primarily due to brewers and publicans grappling with higher taxes, utility bills and staffing costs.

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