Pub closures blamed on costs and disproportionate tax burden

The British Beer and Pub Association (BBPA) have reported that 161 pubs closed across the country in the first three months of 2026. It is estimated that this has led to the loss of 2,400 jobs. Scotland has been the most heavily affected, with 41 closures between January and March.

The BBPA have called for longer-term changes, including an overhaul of taxes affecting the hospitality industry.

Emma McClarkin, chief executive of the BBPA, said: “The scale of these closures is avoidable because pubs are doing a brisk trade, but their profits are wiped out by a disproportionate tax burden and tax costs. We want to work with government to establish a permanent long-term plan that will deliver permanently lower bills, a fairer system and ultimately protect this treasured sector.”

A 15% relief on business rates for pubs came into effect in April 2026 and will be followed by a two-year freeze. A government spokesman also noted extended opening hours for the World Cup and alcohol duty cuts on draught pints as part of the support that is currently being offered.

However, increased employment costs and shifting consumer habits continue to make trade challenging for many pub businesses.

If your business is under pressure by tax or other costs, getting early advice can make a big difference to your options. Please feel free to contact us; we would be happy to help you.

See: https://www.bbc.co.uk/news/articles/c9d355nw7jzo