The pub industry has called for urgent reform of business rates after new figures showed a 50% increase in the number of pubs shutting their doors for good.
Statistics compiled by commercial property specialist Altus Group reveal that 230 pubs in England and Wales were either converted for other uses or demolished in the three months to 30 June 2023.
That compares to 153 in the previous quarter, and equates to more than two pubs a day disappearing from local communities in the first half of the year.
Alex Probyn, president of property tax at Altus Group, called on Chancellor Jeremy Hunt to maintain the current 75% discount on business rates in his Autumn Statement in November.
“With energy costs up 80% year-on-year in a low-growth, high-inflation and high-interest rates environment, the last thing pubs need is an average business rates hike of £12,385 next year,” Probyn said.
“These figures don’t just tell the story of the hard times pubs have faced the past few years but indicate what’s to come if the government fails to extend the business rates relief and implement wider business reform,” added Emma McClarkin, chief executive of the British Beer and Pub Association.
“Since 2020 our pubs have faced a myriad of challenges, from forced closures to an ongoing energy crisis, and for many the looming increase in business rates early next year will be the last straw.”
