September 22nd 2024.
In the first half of 2024, England and Wales saw an alarming number of pubs closing down or being repurposed. According to a recent analysis of government data by real estate intelligence firm Altus Group, more than 50 pubs were lost on average each month during this time period. By the end of June, the total number of pubs, including those that were vacant or available for lease, had decreased to 39,096, a drop of 305 from the end of 2023.
Unfortunately, this trend was not unique to just one part of the country. The north west of England was hit the hardest, losing a total of 46 pubs in the first half of 2024. And the entire financial year from April 2023 to March 2024 saw a total of 472 pubs closing their doors for good. It's a sad reality that many of these beloved establishments were either demolished, converted into other types of businesses, or even transformed into homes, offices, or day nurseries.
The struggles of the pub industry can be traced back to the pandemic, which caused pubs and restaurants to shut down for prolonged periods of time in 2020 and 2021. And as if that wasn't enough, the industry then had to deal with soaring inflation and a depressed sales market in 2022 and 2023. This combination of factors has made it increasingly difficult for pubs to stay afloat and turn a profit.
In an effort to alleviate some of these financial burdens, the industry has been calling for reforms to business rates. Currently, pubs receive a 75% tax discount, but this is set to expire in March 2025. Alex Probyn, president of property tax at Altus Group, has warned of a "double whammy" of tax increases for pubs next April and is urging Chancellor Rachel Reeves to extend the business rates relief in the upcoming autumn Budget.
But it's not just taxes that are causing concerns for pubs. The British Beer and Pub Association has also recently called for a reduction in beer duty, as pubs currently only make an average profit of 12p on each pint of beer after taxes and costs are deducted. And some in the industry are worried about potential plans to ban outdoor smoking, including in beer gardens and outside stadiums, as this could have a negative impact on sales.
As the hospitality industry continues to face challenges and uncertainties, it's clear that something needs to be done in order to support and protect our beloved pubs. The government must consider the long-term effects of their decisions and take action to ensure the survival of these important community hubs.
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