More than 400 pubs in England and Wales shut down permanently in 2023 as soaring costs and cautious consumer spending took their toll.
This marked the sharpest decline in pub numbers since 2021, with closures accelerating throughout the year.
An analysis by property data firm Altus Group reveals that the total number of pubs in England and Wales has fallen below 39,000 for the first time.
As of December, 412 pubs were either demolished or repurposed, bringing the total to 38,989, including vacant establishments available for lease.
Most closures occurred in the first half of the year, averaging over 34 pub shutdowns per month.
Regional Declines and Long-Term Challenges
London experienced the steepest drop, losing 55 pubs and reducing the capital’s total to 3,470 by year’s end.
The West Midlands followed closely, with a loss of 53 pubs, leaving 3,904 remaining in the region.
Since the beginning of 2020, more than 2,000 pubs have closed, with operators struggling against rising costs and reduced consumer spending.
Higher rents, increased mortgage payments, and inflationary pressures have left many households with less disposable income, further affecting the hospitality sector.
Mounting Pressure for Publicans
Pub operators are bracing for additional financial challenges in 2024, including increased national insurance contributions, higher minimum wage requirements, and a reduction in the business rates discount from 75% to 40% by 2025.
Alex Probyn of Altus Group warned of grim prospects: “Many publicans fear this Christmas could be their last due to a perfect storm of rising costs and diminishing reliefs. With these pressures, some pubs will no longer be viable, making their sites attractive for alternative investments.”
Emma McClarkin, CEO of the British Beer and Pub Association, emphasised the economic significance of pubs, stating: “Pubs and brewers contribute billions to the economy and support over a million jobs. Every closure is a blow to the nation’s coffers and job market.”
She urged the government to implement “permanent and meaningful business rate reforms” to provide stability for the sector.
Reduced Relief and Uncertain Future
In response to the Covid-19 pandemic, hospitality businesses were granted 100% business rates relief between 2020 and 2022.
However, this was reduced to 75% and is set to be entirely withdrawn in April 2024. Without substantial government intervention, the trend of closures may continue, further diminishing Britain’s historic pub culture.
