Pub and restaurant closures ramp up as UK economy losing three sites a day

Patrick O'Donnell
Mon, 27 Apr 2026 12:59:40 +0000

The UK is losing three pubs and restaurants every day on average as the US-Iran war pushes up costs for hospitality businesses, shocking new analysis has found.

A new report from consumer intelligence firm NIQ suggests the British economy has seen more than 350 sites shut down for good in the first three months of 2026

This comes to an average of 3.4 closures daily, and comes as businesses are already reporting their difficulty in navigating recent policy decisions from Chancellor Rachel Reeves.

Since Labour has returned to Government, the Chancellor has raised the rate of National Insurance contributions paid by employers and the National Living Wage.

Hospitality establishments have borne the brunt of this move from Ms Reeves, with restaurants and landlords being forced to shut down their businesses in recent years.

Data from NIQ suggests the number of pubs and restaurants in the UK has slipped for the second consecutive quarter, with 382 locations ceasing operations between October and December.

This means the UK economy has lost 0.7 per cent of its licensed premises in the last six months, with only 98,609 pubs and restaurants remaining.

NIQ director Karl Chessell described the fiscal situation businesses are in as "nearing breaking point" with the US-Iran war widely expected to push up fuel costs for the foreseeable future.

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He said: “Soaring costs have taken a heavy toll on hospitality in the first quarter and forced hundreds of businesses to close, with distressing impacts for the operators and employees concerned.

"Confidence among leaders and consumers alike is low, and geopolitical crises are likely to cause more damage in the months ahead."

Based on NIQ's data, 86 pubs have shut their doors for good between January and March of this year, representing a drop of 0,2 per cent.

During her Budget statement, Ms Reeves confirmed that Covid-era business rates relief would end for hospitality firms in April, having previously been scaled back from 75pc to 40pc..

Thanks to the recent hike to the National Living Wage, the minimum amount workers can get paid has gone up by 6.7 per cent and 4.1 per cent over the last two years.

Multiple hospitality trade bodies, including UKHospitality and the British Beer and Pub Association, released a joint statement earlier this month, decrying the Chancellor's tax raids on the sector.

The statement read: "Yet again, hospitality businesses enter April facing billions of pounds in additional costs, which will force many to make heartbreaking decisions.

"Despite the necessary and welcome support for pubs on business rates, neighbourhood restaurants, local hotels, and independent cafes all face their bills rising in the thousands.

"Hospitality’s tax burden – the highest in the economy – is suffocating the sector. The impact is clear: more lost jobs, less investment, and business closures. The jobs, communities, and livelihoods we support are hit once again."