Labour is set to reveal assistance for pubs in crisis across Britain, as data shows the closure of two pubs daily. The government is anticipated to introduce a set of measures soon to address an impending tax increase. Chancellor Rachel Reeves acknowledges the struggles faced by pub owners and is prepared to take action, particularly concerning business rates. However, it remains uncertain whether the upcoming announcement will offer temporary relief or permanent tax cuts, as the industry demands immediate action to prevent further closures.
Recent figures indicate that 188 pubs closed in the final quarter of 2025, with a significant portion being community pubs relying heavily on drink sales. The report from NIQ and CGA intelligence reveals a decrease in food-led pubs and high street establishments during this period. The Mirror’s Your Pub Needs You campaign advocates for support for landlords and their communities.
While additional support will be appreciated, many in the pub sector argue that radical measures are necessary to stem the tide of closures, which has surpassed 2,000 since the beginning of 2020. Pubs are facing various challenges, including shifting consumer habits, wage increases, and escalating energy expenses. The primary concern is the proposed rise in business rates due to the expiration of Covid-era relief and upcoming revaluations in April.
Despite the Treasury’s assurance of a £4.3 billion support package to limit pub bill increases, there are calls for similar assistance to be extended to other businesses affected by rate hikes. NIQ data reveals a net decrease of 382 hospitality sites in the UK between September and December, with over four closures daily. The fear is that the rate of closures may escalate in the new year as financially constrained customers reduce spending.
Additionally, NIQ reports closures of nightclubs, sports clubs, and restaurants in the past year. The latest quarter’s spike in closures during the crucial trading period of the year underscores the financial strain on the hospitality sector. Without increased support and improved consumer spending, hundreds more closures are predicted in the coming months.
A spokesperson from the Treasury emphasized the government’s commitment to supporting pubs, citing the previous £4.3 billion support package announced in the Budget to shield most ratepayers from business rate hikes.