One in ten pubs at risk: Thousands more boozers will close unless Jeremy Hunt extends tax breaks, industry warns – after the number of bars in Britain dropped below 100,000 for the first time

One in ten pubs are at risk of closing in the New Year if Jeremy Hunt fails to expand business rates relief in his Autumn statement, industry leaders have warned.

The woeful prediction comes as Britain’s hospitality industry continues to struggle, with the rate of closures across the country meaning there are fewer than 100,000 pubs operating in the UK. 

Hospitality bosses have warned that the sector could be hit by a £1billion tax blow if the Chancellor fails to act next week and extend the existing tax relief scheme that businesses are currently enjoying.

Chiefs from top organisations, including UK Hospitality, have claimed the sector will face a combined bill of £2 billion if action is not taken swiftly.

A survey carried out by UK Hospitality showed that one in 10 respondents would cease operations and close if the business relief rates were not extended, with six in 10 claiming it would result in higher prices and reduced staff levels.  

Pub closures from the end of 2022 until the end of June 2023

One in ten pubs are at risk of closing in the New Year if Jeremy Hunt fails to expand business rates relief in his Autumn statement , industry leaders have warned (pictured: The Bird In Hand in Sonning, Oxfordshire)

Kate Nicholls, the chief executive of UKHospitality, warned that one in 10 pubs could close next year 

The industry body’s chief executive Kate Nicholls told MailOnline: ‘Freezing rates and extending relief will be a lifeline for a sector that simply cannot absorb any more costs. Inaction will leave hospitality businesses with no choice but to put up prices, open less or, in the worst-case scenario, shut their doors for good.

‘Pubs, restaurants, cafes and hotels, to name a few, act as pillars of their communities and they want to continue in that central role, as well as driving economic growth and providing countless jobs. Action on business rates at the Autumn Statement is critical to that.’

READ HERE: Chancellor Jeremy Hunt is expected to cut inheritance tax in next week’s Autumn Statement with inflation now at lowest level in two years 

If not ‘there is going to be an almighty post-Christmas hangover’, she added. 

Tom Stainer, chief executive of CAMRA, warned that if the Government needs to ‘act soon or we risk the further closure of beloved locals’. 

He said: ‘This is make-or-break time for the industry, as not only is government help with business rates being cut, but pubs and the local breweries and cider producers who serve them are being hit by the perfect storm of rising costs of goods, spiralling energy bills and employing staff, while customers continue to tighten their belts due to the ongoing cost-of-living crisis.’

The group is calling for the Government to continue the business rate relief scheme, reduce draught beer and cider duty and scrap ‘unnecessary rules that are preventing draught takeaway sales from draught duty-paid containers’.

It also urged Mr Hunt to take ‘action upon the energy supply and pricing issues for pubs and the supply chain’.

Emma McClarkin, Chief Executive of the British Beer and Pub Association added: ‘Current closure rates in our sector paint a stark picture for the future of Britain’s historic pubs. 

‘With closure rates having doubled in the first half of this year, and a raft of cost increases coming in the next six months, thousands of pubs across the country will be worried that they’ll have to call last orders for the final time before the end of 2024.’

‘We need intelligent intervention from Government to extend business rate relief and cancel the planned second beer duty increase in six months next April, to allow our sector to recover from three and a half years of unprecedented trading conditions and stop the rapid decline in the number of pubs in this country.’

Hospitality bosses have warned that the sector could be hit by a £1billion tax blow if the Chancellor fails to act next week and extend the existing tax relief scheme that businesses are currently enjoying

A survey carried out by UK Hospitality showed that one in 10 respondents would cease operations and close if the business relief rates were not extended, with six in 10 claiming it would result in higher prices and reduced staff levels

More than 44,000 licensed premises have closed in the last 20 years, leaving just 99,916 still trading at the end of September this year

One in ten pubs are at risk of closing in the New Year if Jeremy Hunt fails to expand business rates relief in his Autumn statement , industry leaders have warned

It comes as shocking figures collected by the British Beer and Pub Association reported that 124 million pints were sold in the third quarter of 2023 compared with last year.

Last month it was revealed that the number of bars and pubs across the UK had dropped below 100,000 for the first time on record because punters were put off by the price.

More than 44,000 licensed premises have closed in the last 20 years, leaving just 99,916 still trading at the end of September this year. 

The research by consultancy CGA/NIQ showed it was the lowest number since records began in 2003, as the pandemic and high costs accelerated closures.

Pub goers have continued to be hammered by rising costs when they go out – with a pint costing more than 74p than it did last year. 

Figures from the Office for National Statistics showed the average pint of lager cost £4.62 in September, up from £3.88 in the same month last year. 

In the last 20 years, the largest losses have been at drink-led pubs, bars and nightclubs, with figures growing in venues that focus on food – such as gastropubs. 

A different survey showing by the insurance firm Altus Group also reveraled a bleak picture of Britain’s pub landscapes. It showed that there were 383 closures of pubs in the first half of 2023. 

Among regions, Wales was the worst affected with 52 pub closures, followed by London and the North-West at 46 respectively, and in third place, Yorkshire and Humberside with 43.

The North-East, which has the fewest pubs among the regions, also had the fewest closures at 25. 

Alex Probyn, president of property tax at Altus Group, also called on the Chancellor to act in his autumn statement in November to ease the pressure of significant business rates on the sector. 

Mr Probyn said: ‘With energy costs up 80 per cent year-on-year in a low growth, high-inflation and high-interest-rate environment, the last thing pubs need is an average business rates hike of £12,385 next year.’ 

With less than a week until the Autumn budget, cafes and pubs have also warned they could face closure if the 75 per cent business rates discount for retail, leisure and hospitality firms ends as currently planned on March 31.

A coalition of business groups, including UK Hospitality, the British Retail Consortium and the Association of Convenience Stores, have called for a freeze and extension of tax reliefs. 

It came after reports suggested Mr Hunt would not be extending the interest rates freeze for bigger retail and hospitality chains. 

FSB policy chair Tina McKenzie said: ‘Government is about choices and the Chancellor must concentrate his firepower where it can do the most good – small firms and the 16million jobs they support. The prize for getting this right is huge.’

She added: ‘The Autumn Statement is the key moment for Parliament to stand up for the small firms across the country who work hard, pay a fortune in taxes, and provide the jobs our communities need.

‘Small firms will be watching and hoping that the Chancellor delivers what the country needs. Jeremy Hunt must seize the moment.’

Bosses of Marks & Spencer, Sainsbury’s and Currys have also urged him to cut or freeze the tax hike. 

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