More than 400 pubs in England and Wales have either shut down or been repurposed over the past year, taking the total number below 39,000 for the first time. This decline is attributed to rising operational costs including changes to the alcohol duty system and increased energy bills. The UK brewing and hospitality sectors face further challenges in 2025 with impending rises in employer national insurance and the National Living Wage.
Alex Probyn, UK president of property tax at Altus Group, articulates the concerns of publicans, stating that 'Many publicans I speak to are extremely worried that this could be their last Christmas.' He highlights that 'Costs for employers are going up just as rates relief is being scaled back,' which exacerbates difficulties in maintaining profitability for many establishments.
The rapid decline seen in the leisure industry, particularly nightclubs, underscores the broader challenges facing hospitality. Nightclubs plummeted from 1,700 a decade ago to just 787 by June 2024, reflecting the deep toll the pandemic and subsequent economic pressures have levied on the sector.
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