Around 360 pubs are expected to close their doors for good in 2026, according to research from the British Beer and Pub Association (BBPA), which says Andy Burnham's tax cuts for hospitality have not gone far enough.
So far this year, 295 pubs have shut permanently, meaning a pub has closed on average every day of 2026. The BBPA estimates these closures will cost about 5,000 jobs, with more than half of those workers aged under 25.
Tax receipts and closures
The trade body said the government could lose nearly £72m in tax receipts due to these closures, as the typical pub contributes about £200,000 to the Treasury. Last year, 336 pubs closed in the UK, and nearly 2,200 pubs have shut over the last five years.
The BBPA says Britain's pubs are still recovering from last year's Budget, when then-Chancellor Rachel Reeves' tax raid added an extra £322m in costs onto pubs and brewers.
Industry calls for more support
In one of his first acts as Prime Minister, Andy Burnham announced a 20 per cent cut to business rates for pubs, clubs and live music venues, which the BBPA said was "wholeheartedly welcome". However, the industry body believes the Prime Minister still needs to tackle "the root of the problem".
Earlier this year, the British Beer & Pub Association, UK Hospitality, the British Institute of Innkeeping and Hospitality Ulster said in a joint statement: "The new prime minister's action to back hospitality has clearly driven a boost in the sector's optimism, yet significant challenges remain. The support for pubs and live music venues on business rates was a great first step and now we need to see wider support and conditions to allow the entire hospitality sector to grow and create jobs."
The statement added: "Our tax burden – amongst the highest in the economy – along with new regulatory costs is overwhelming us and the real victims are high streets, jobs and communities. A lower rate of VAT, wider permanent business rates reform and changes to employer NICs [national insurance contributions] would help deliver the prime minister's bold ambitions for every postcode."
Government response
In response, a government spokesman said: "The chancellor prioritised support for the hospitality industry in his first week in the job when he cut business rates by 20% for pubs, social clubs and live music venues – saving thousands of locals over £1,000 a year. This is on top of providing a tax break on poured pints and capping corporation tax."
