Budget 2025 Warning: Six UK Pubs Could Close Daily Without Action
Budget 2025 may trigger mass pub closures

Chancellor Rachel Reeves is facing urgent calls to intervene in the upcoming Budget, amid stark warnings that the UK is on the brink of the biggest loss of pubs in a generation.

A Sector on the Brink

The dire prediction comes as industry forecasts suggest the rate of pub closures could skyrocket from one a day this year to a devastating six a day in 2025. This alarming projection follows the closure of more than 2,000 pubs since 2020, painting a bleak picture for the future of the British local.

The crisis was brought directly to the government's doorstep as a petition with a quarter of a million signatures was delivered to Downing Street. Organised by the British Beer and Pub Association (BBPA) and the Long Live The Local campaign, the petition demands the government act now to save British pubs.

Industry Demands for Survival

The campaign outlines three critical measures needed to avert disaster. It calls for permanent and meaningful business rate reforms, a reduction in beer duty to bring it closer to the European average, and decisive action to curb the soaring regulatory costs burdening pubs and brewers.

Emma McClarkin, chief executive of the BBPA, issued a powerful statement, describing the Budget as a once-in-a-generation opportunity for the Chancellor. She urged her to reverse years of damaging policies that have stripped profits from brewers and pubs and left communities without their social heart.

Anything other than meaningful business rates reform, a cut in beer duty, and mitigation of eye-watering regulatory costs would crush a sector that is already shouldering so much, McClarkin stated. Get this Budget right and we can invest in workers and communities, get it wrong and we could be looking at the biggest loss of pubs in a generation.

The Publicans' Plight

Landlords from across the UK travelled to Westminster to highlight the immense pressure they are under. Craig MacLeod, 59, who runs the Innes Bar in Inverness, made the journey to stand up for the industry.

We are being hit hard by taxes, he explained. We’ve got business rates, and gas and electricity costs have gone through the roof. With three decades of experience, Mr MacLeod revealed that profit margins have become razor-thin, with publicans now lucky to make 10p or 12p a pint profit.

He delivered a grim assessment: The pub industry is dying and if we have any more cost increases it will die even quicker. Anything that increases taxes will be the final nail in the coffin.

In West London, James Fitzgerald, landlord of the Thatched House in Hammersmith, shared his own struggles. His costs have surged by more than £20,000 in the past year, forcing him to cut staff numbers by a quarter. As a single father who also lives above the pub, he emphasised its role as a vital community asset, especially for elderly residents who rely on it for social contact.

Despite the financial strain, his pub continues to host fundraising events, with Mr Fitzgerald recently covering the cost of a meal for 60 people to support a local community garden project. The costs of running the business are astronomical, he said, summing up the sentiment of an entire industry pleading for a lifeline.