More than 200 British pubs have closed for good in 2025 after Chancellor Rachel Reeves's National Insurance raid, "absolutely heartbreaking" new figures has found.
The UK's pub industry faces an unprecedented crisis, with 209 establishments permanently shutting down through demolition or conversion during the initial six months of 2025.
This figure equates to eight pubs vanishing from communities every week. Fresh Government data reveals the total number of pubs across England and Wales has dropped to 38,780, marking a significant decline in the hospitality sector.
These closures represent venues that have been transformed into residential properties, offices or alternative facilities including nurseries, meaning they are lost to the industry forever.
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Publicans are taking aim at Rachel Reeves's National Insurance raid
|GETTY
Analysts note that publicans are grappling with a perfect storm of escalating expenses that have made operations increasingly unviable. The national living wage jumped 6.7 per cent in April, reaching £12.21 hourly for employees aged 21 and above.
Simultaneously, employer National Insurance (NI) contributions surged from 13.8 per cent to 15 per cent, whilst the payment threshold was reduced.
As well as this, pubs have had to deal with the reduction in business rates relief from 60 per cent to just 25 per cent in April, subject to a £110,000 ceiling.
Industry leaders have condemned the closures as devastating for communities nationwide.
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Pubs are closing down
| PAEmma McClarkin, chief executive of the British Beer and Pub Association, described the situation as "absolutely heartbreaking" and drew a direct connection between permanent closures and the recent surge in operational costs.
"Pubs and brewers are important employers, drivers of economic growth, but are also really valuable to local communities across the country and have real social value," McClarkin stated.
She warned that many of these establishments would never return once closed.
"The Government needs to act at the budget, with major reforms to business rates and beer duty," she urged.
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The property tax specialist Alex Probyn from Ryan highlighted how the reduction in business rates relief from 75 per cent to 40 per cent has burdened the industry with an additional £215 million in taxation.
He calculated that a typical small pub has seen its average rates bill soar from £3,938 to £9,451, representing a 140 per cent rise.
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| PA"The combination of soaring business rates, higher national insurance contributions, the rising national minimum wage and packaging taxes are all quietly draining profits until staying open becomes impossible," Probyn warned.
He noted that developers quickly acquire these sites for more profitable ventures.
Since early 2020, communities have lost 2,283 pubs permanently across England and Wales.
The South East suffered most severely in 2025's first half, with 31 establishments closing within six months.