Analysis of Government figures by commercial real estate adviser Altus Group showed pub closures rose by 6.7% in 2024 compared with 2023, with more than 34 a month having vanished from communities throughout the year.
It means the overall number of pubs in England and Wales, including those also vacant and being offered to let, fell to 38,989 in December, down 412 compared with 39,401 at the same point in 2023.
Extremely worried
London saw the highest number of closures, according to the data, with 55 venues having called last orders for a final time last year, followed by the West Midlands, which saw 53 venues close for good.
The East Midlands, South East and Yorkshire also saw a notable number of closures.
At the end of last year, trade bodies warned of further risks to profitability for the sector in 2025 as the measures announced in the 2024 autumn Budget come into force, including rises to employer National Insurance Contributions and a reduction in business rates relief.
Altus Group Alex Probyn said: “Many publicans I speak to are extremely worried this could have been their last Christmas, given the combination of hiking the amount employers will have to pay in National Insurance, increases to the minimum wage and the business rates discount being slashed from 75% to 40% in 2025.”
No longer viable
In addition, beer prices were estimated to have increased by 2.5% in the year to November 2024, meanwhile inflation also hit 2.6% and interest rates were held at 4.75%.
Moreover, water bills were last month estimated to increase by 42% for businesses over the next five years.
On top of this, energy prices, particularly for gas, have risen sharply over the past few weeks, leaving the market “uncertain” for Q1 2025, according to Nationwide Energy.
It followed news the Government had axed the Community Ownership Fund, a scheme that allowed communities to bid for ownership of local assets at risk of being lost, including pubs.
Probyn added: “Many pubs simply will no longer be viable making plots even more attractive for alternative investment.”
