More than 500 pubs tipped to close this year

MPs have warned that recent and upcoming policies could be the final nail in the coffin for many pubs, as the Commons backed an increase in alcohol duty in line with inflation.

Pubs have faced a toxic cocktail in recent years, including an increase in employer's national insurance, the minimum wage, energy costs, business rates, inflation, new worker's rights legislation and now a rise in alcohol duty. The alcohol duty rise will come into play from 1 February, after MPs backed the government's Finance Bill that will enact policies announced in Rachel Reeves's budget.

Analysis of government data by tax specialists at Ryan showed that one pub a day closed permanently in England and Wales in 2025. Another 540 pubs are set to close this year, according to new modelling from UKHospitality.

That has raised alarm among many, including among Labour figures - and Ms Reeves is working on a package for pubs which could help them with business rates. 'The rural pub is in danger' Despite the alcohol duty rise being backed in the Commons on Tuesday, Labour MPs were among those who voiced concern about the pressures facing pubs.

Years of multiple challenges have "left many venues operating on very low margins, if any at all," Jacob Collier, Labour MP for Burton and Uttoxeter said. Gareth Snell, another Labour MP, said one brewer in his area faced a 450% business rate increase and called for a "realistic, workable solution" from the government.

Liberal Democrat MP Calum Miller many pubs in his Bicester and Woodstock constituency have shut, leaving towns and villages without a "key institution that brings the community together". Shadow treasury minister James Wild said the hospitality industry is being "punished" by the government, who are "layering costs upon costs".

The UK's longest serving and oldest MP, Sir Edward Leigh, also raised concerns about government plans to lower the legal limit for drink-driving and what it would mean for rural pubs. He cautioned that "everybody who accesses these pubs in rural England has to go there by car.