Local communities across England are being offered access to a new £61million fund to help purchase struggling pubs and other valued venues before they close permanently.
Communities Secretary Steve Reed will unveil the scheme today as part of the Government’s wider efforts to support hospitality businesses facing mounting financial pressures.
Ministers said the funding will give local groups the chance to take ownership of venues that play an important role in community life and which might otherwise be sold off or shut down.
The initiative forms part of a broader package aimed at supporting the hospitality sector at a time when many businesses are grappling with rising operating costs.
Alongside the funding, Labour is introducing new Community Right to Buy powers intended to strengthen the position of residents when community assets are put up for sale.
The measures will allow communities to register an interest in purchasing venues considered important to local life, giving them an opportunity to secure a deal before properties are offered on the open market.
Ministers said the changes are designed to give residents a greater role in determining the future of valued local establishments.
The announcement follows a series of recent steps to support pubs and hospitality businesses.
Britons handed £61million fund to save local pubs from closure
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Earlier this year, ministers confirmed pubs would be allowed to stay open later during this summer’s World Cup, and the Government has pledged to reduce regulatory burdens on pubs, restaurants and other venues.
Steve Reed said: “This new announcement is about giving local people the power to stop their boozer and other beloved spaces closing permanently.
"So get down there, support your local during the World Cup — it’s your patriotic duty.”
Labour said the combination of extended opening hours, reduced regulation and new community‑ownership powers is intended to help strengthen the long‑term future of local hospitality venues.
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The announcement comes amid growing concern over the financial health of Britain’s hospitality sector
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Industry leaders warned earlier this year that an average of six pubs, restaurants and hotels could close every day from April unless changes were made to the business rates policy.
Trade body UKHospitality has identified 2,077 venues it believes are at risk of closure due to rising costs — including 963 restaurants, 574 hotels and 540 pubs.
Representatives say higher operating costs are placing increasing pressure on businesses across the sector.
Hotels are expected to face some of the largest additional costs.
UKHospitality estimates the average hotel could face an extra £28,900 in business rates costs next year, rising to a cumulative £205,200 by 2029.
Businesses have also pointed to higher staffing costs, energy bills and other operating expenses as factors affecting profitability.
Labour said the new fund and Community Right to Buy measures are intended to help preserve important local venues and give communities a greater opportunity to keep valued establishments operating for future generations.
Ministers believe the scheme will offer residents a practical route to safeguarding pubs and other assets that might otherwise be lost as businesses continue to navigate a challenging economic environment.