Labour slammed as 789 UK pubs close for good - 'discounts are not enough'

Nearly 800 pubs and bars shut their doors across England, Scotland and Wales last year, new analysis has revealed, amid the ongoing financial pressure on the industry. Figures compiled by UHY Hacker Young show that 789 venues fell into insolvency in 2025, marking a rise of around 3% compared with 2024. The increase was driven by Scotland, where closures jumped by 33% - from 40 to 53. In England and Wales, insolvencies edged up from 729 to 736.

The total number of failures last year was more than double the 367 recorded in 2020. High-profile casualties in 2025 included cricket-themed chain Sixes, backed by England captain Ben Stokes, and pub and hotel operator Oakman Inns. This year has already brought further turmoil, with the collapse of Revolution Bars owner The Revel Collective and the closure of 38 of the 49 bars run by craft beer firm BrewDog.

It comes as Wetherspoons boss Tim Martin recently urged the sector to come together and back calls for a reduction in VAT, warning of mounting financial strain across the industry.

Experts say a combination of rising costs and shifting consumer habits is pushing more operators to the brink. According to Peter Kubik, partner at UHY Hacker Young, businesses are facing pressure from higher staffing costs, energy bills and food prices, as well as increased regulation.

He warned that more closures are likely, saying: "Pubs and bars are firefighting on several fronts, and with the exception of Covid-19 and 2024, insolvencies have risen every year over the past decade. I would not be surprised to see more."

Operators are also dealing with falling demand, as squeezed household budgets mean fewer people are going out. Since 2020, the average price of a pint of lager in the UK has climbed from £3.75 to £4.83, with even sharper increases in cities such as London, Beer Today reports. Combined with the cost of living crisis, this has made nights out less affordable for many.

According to Mr Kubik, wider global factors could add further strain.

He said: "Pub groups will be worried how war in the Gulf is going to impact their energy prices. The Government will be giving pubs a 15% discount on pubs and bar groups' business rates bills from April, but it simply is not enough when you look at the costs and burdens they face. It is like giving someone facing a tidal wave in a small boat a bucket."

Changing lifestyles are another major issue for the industry. More people are working from home, reducing after-work footfall, while fewer young people are drinking alcohol. In England, 24% of people did not drink at all in 2024, up from 19% in 2022 - rising to 39% among those aged 16 to 24.

Kubik said these long-term trends are a major concern, explaining: "The demographic and behaviour changes pubs and bars face are particularly concerning. Young people are drifting away from having a drink after work and drinking at all, which means pubs and bars'customer base is getting older and will continue to decline unless something changes."