Analysis of official Government data by commercial real estate advisory service, Altus Group, showed a total of 472 pubs vanished from the communities they once served during the first half of the year, equating to 50 sites per month.
The data revealed the overall number of pubs in England and Wales, including those vacant and being offered to let, fell to 39,096 in the six months to 30 June, down 305 compared with 39,401 at the end of 2023, having been demolished or converted.
Pubs in the North-West were hardest hit, having lost 46 pubs in total during this time, followed by the East-Midlands and South-West regions, which both saw 37 venues close for good.
Double whammy
Ahead of the upcoming Budget, set to take place on Wednesday 30 October, Altus Group president of property tax Alex Probyn called on the Chancellor to take action on business rates.
Probyn warned pubs could face a “double whammy” of property tax rises next April if the current 75% discount were to end and rise in line with the headline rate of inflation, potentially adding an extra 2.2% to bills next year.
“The last thing pubs need is an average business rates hike of £12,160 next year through inflationary rises and the loss of the discount”, Probyn added.
Earlier this month, numbers from accountancy firm PwC highlighted the first half of 2024 saw more than two chain pubs close per day, attributed to energy and labour cost hikes.
In addition, the latest figures from tax consultancy RSM UK showed insolvencies within the sector had jumped 16% in the year to July 2024.
Final nail in the coffin
Government data, released last week, revealed accommodation and food service insolvencies increased from 3,292 in the 12 months to July 2023, to 3,822 in the 12 months to July 2024. However, the numbers were static month-on-month in July this year.
RSM UK head of leisure and hospitality Saxon Moseley said: “The figures highlight the continuing impact of some really tough trading conditions for the leisure and hospitality sector.
“These numbers show just how critical the upcoming Budget will be for businesses that continue to struggle against a backdrop of economic headwinds, particularly in terms of food inflation, increasing wage costs and high interest rates.
“While confidence has been slowly improving, recent news of potential tax rises in the autumn has dented the mood of the nation’s consumers.
“The fiscal measures unveiled on 30 October will not only determine the long-term viability of many businesses, but will also define medium-term consumer spending, which in turn could either help save businesses or be the final nail in the coffin.”
Credit: Altus Group
