A pub per day across England and Wales has permanently closed in 2025, underlining the growing pressure facing the UK hospitality sector as rising costs continue to be felt.
Analysis of government data shows that 366 pubs were either demolished or converted to alternative uses in the year to December, averaging one irreversible closure every 24 hours.
Figures analyzed by property tax specialist Ryan show the total number of pubs in England and Wales fell to 38,623 from 38,989 last year. Crucially, these are not temporary closures: the buildings have been converted into housing, offices, nurseries, cafes and other commercial uses, meaning they are unlikely to ever return as pubs.
Alex Probyn, property tax expert at Ryan, said the data painted a bleak picture for the sector.
“These pubs are permanently closed, not temporarily,” he said. “Once a pub is torn down or rebuilt, it almost never comes back. This should serve as a wake-up call.”
Almost 2,000 pubs have disappeared in the last five years, although the pace of decline has slowed somewhat compared to the peak of the pandemic. All regions of England and Wales recorded a net loss in 2025, with the East Midlands, North West and Yorkshire and the Humber recording the largest falls.
The closures come amid rising operating costs. Pubs have been hit by increases in the national minimum wage and employers’ national insurance contributions this year, putting pressure on margins in a sector already operating on slim profits.
The outlook is expected to worsen from April 2026 when commercial properties are revalued at business prices. While the government has announced a phased easing to soften the blow, many pubs are facing significantly higher bills as a result of the new assessments.
Probyn said the rating system is becoming increasingly disconnected from economic reality.
“Many pubs have come through the pandemic thanks to resilience and community support, but have then been pushed to the sidelines by rising costs and a tax system that no longer reflects the difficulty of trading.”
Emma McClarkin, chief executive of the British Beer and Pub Association, said the scale of closures was unnecessary and avoidable.
“The situation is dramatic,” she said. “Many of these closures are the direct result of an excessive tax and business rates burden, which is why business rates relief for pubs has never been more important.”
She warned that without targeted action, communities would continue to lose important social centers. “Once the bars are gone, they’re gone forever.”
A Treasury spokesman said support for hospitality businesses was included in recent budgets.
“The £4.3bn support package means that bill increases for pubs are capped at around 4%, rather than the 45% they would have received without intervention,” the spokesman said, pointing to measures including business rates relief, licensing reforms, further cuts in alcohol duty on cask beer and a freeze on corporation tax.
But industry leaders argue these measures are being offset by rising wage, tax and property costs, leaving no viable path forward for many pubs.
As 2026 approaches, data suggests the UK pub sector is entering another critical year, with business rates reform now seen by many operators as the deciding factor between survival and permanent closure.
