Pub closures in Great Britain: Alarming developments in the hospitality industry

The situation for traditional pubs in Great Britain continues to deteriorate. In the first quarter of this year, 239 pubs had to close their doors, according to the real estate advisor Altus Group, based on government data. This represents an increase of about one-third compared to the same period last year. The causes are varied: rising energy and food prices, declining consumer purchasing power, and significant tax burdens in the hospitality sector. On average, 80 pubs ceased operations each month, compared to about 50 per month in the first quarter of 2023. The total number of traditional pubs in England and Wales has thus decreased from 39,401 at the end of 2023 to the current 39,162. Northwestern England is particularly affected by this trend. Industry representatives and breweries are making urgent appeals to politicians in light of this development. In the context of the upcoming parliamentary election on July 4, they are calling for significant reductions in beer tax and a reform of business rates. According to Altus expert Alex Probyn, business rates have increased by 49 percent over the last 14 years under the conservative government. Overall, businesses now pay an additional £9.48 billion (approximately €11.2 billion) per year compared to 2010. The decline in pubs had already begun before the COVID-19 pandemic, facilitated by factors such as the smoking ban, cheaper alcohol in supermarkets, and changing drinking habits. The pandemic and inflation have further exacerbated this downward trend. Both large chains like market leader Wetherspoons and smaller independent pubs are affected.