The UK pub sector is facing a serious and on-going crisis with an average of six pubs closing each week over 2024.
This hasn’t improved in 2025, so far close to 300 establishments in England and Wales have shut their doors permanently. While this hits the already struggling high street hard, it has also resulted in circa 4,500 job losses.
With the impact of covid lockdowns well behind us, concerningly, this trend of closures stem from a complex mix of differing financial pressures and changes in consumer habits.
To start with, pubs are being squeezed by rising interest rates, increased energy costs, and increased employment costs. In the 2024 Chancellor Rachel Reeves’ Autumn Budget confirmed that the rate of an employers’ national insurance contributions increased from 13.8% to 15%. This had a dramatic hit on publicans as it’s a direct tax on employment.
However, this added cost is not in isolation and instead adds to an ongoing wave and burden of costs. With minimum wage increases and the reduction of the business rates discount for hospitality and retail businesses from 75 percent to 40 percent. In total, these financial changes are forecast to add approximately £650 million in costs to the industry.
To put this into perspective, £1 in every £4 that is spent at the pub is tax alone.
At the same time, household budgets are under pressure due to the cost-of-living crisis, increased energy bills and general financial uncertainty, leaving patrons with less disposable income for leisure spending and that all important pint at the local, or glass of wine after work.
From a cultural perspective, pubs play a vital role in communities, they create jobs, boost local economies and act as social hubs for locals and visitors alike. If there has ever been a time to support local business, it’s now! So rally up your friends and head down to your local before it too may be no more.
At Stokemont we’ve been involved in a growing number of party wall services for pubs that have closed and are now being converted into habitable flats. In these cases, the reconfiguration of the pub, removal of internal walls, replacement of roof and external extensions have resulted in the need for party wall notices and subsequent Party Wall Awards. If you need party wall advice, get in touch with us now.
