One pub every day across England and Wales will close permanently by 2025, underscoring the increasing pressures facing the UK hospitality sector as rising costs continue to rise.
Analysis of government data shows that 366 pubs were either demolished or converted for alternative use in the year to December, which equates to an irreversible closure on average every 24 hours.
Data analyzed by property tax expert Ryan shows the total number of pubs in England and Wales has fallen to 38,623 from 38,989 a year earlier. Importantly, these are not temporary closures: the buildings have been repurposed for accommodation, offices, nurseries, cafes and other commercial uses, meaning they are unlikely to return as pubs.
Alex Probyn, Ryan's property tax specialist, said the data paints a grim picture for the region.
“These pubs have closed not temporarily, but permanently,” he said. “Once a pub is demolished or converted, it almost never comes back. This should serve as a warning.”
Nearly 2,000 pubs have disappeared over the past five years, even though the pace of decline has slowed slightly compared with the height of the pandemic. Every region of England and Wales recorded a net loss in 2025, with the East Midlands, North West and Yorkshire and the Humber seeing the largest declines.
These have been closed against the backdrop of rising operating costs. Pubs have been hit this year by increases in the national minimum wage and employer National Insurance contributions, squeezing margins in a sector already operating at low profits.
The scenario is expected to worsen from April 2026, when commercial properties will be reassessed for business rates. While the government has announced some relief to soften the blow, many pubs are facing significantly higher bills under the new assessments.
Probyn said the ratings system is becoming increasingly divorced from economic reality.
“Many pubs survived the pandemic through resilience and community support, only to be pushed to the brink by rising costs and a tax system that no longer reflects how hard it is to trade.”
Emma McCarkin, chief executive of the British Beer and Pub Association, said mass closures were unnecessary and avoidable.
“The situation is serious,” she said. “Many of these closures are a direct result of excessive tax and business rates burdens. That's why pub-specific business rates relief has never been more important.”
He warned that without targeted action, communities will continue to lose vital social centres. “Once the pubs are gone, they're gone forever.”
A Treasury spokesperson said support for hospitality businesses was included in the recent budget.
“The £4.3 billion support package means bill increases for pubs have been capped at around 4%, rather than the 45% they would have faced without intervention,” the spokesperson said, pointing to measures including business rates relief, licensing reform, continued reductions in alcohol duty on draft beer and a freeze on corporation tax.
However, industry leaders argue that the measures are being burdened by rising wages, taxes and property costs – leaving many pubs with no viable way forward.
As 2026 approaches, data shows the UK pub sector is entering another crucial year, with improvements in business rates now seen by many operators as the deciding factor between survival and permanent closure.