Tag: appeal to UK Government

Britain set to lose one pub a day in 2026 at the expense of over 5,000 jobs

Government urged to deliver on promises for sector

Approximately one pub a day will have closed by the end of 2026, according to the latest figures from the British Beer and Pub Association (BBPA). 

The trade body estimates that around 360 pubs will permanently shut their doors by the end of the year. This would result in around 5,000 job losses, with over half of these roles being filled by under-25s. 

With the typical pub contributing approximately £200,000 to HMRC, the BBPA said that Government could lose almost £72m in tax receipts including employment taxes, beer duty, business rates, corporation tax and VAT, by the end of the year.  

The Prime Minister has pledged that the cavalry is coming, which is why we’re asking Government to tackle the root of the problem through a permanently fair and sustainable rates burden, freezing beer duty, increasing draught relief and reviewing employment costs for under-25s.  

Emma McClarkin OBE, Chief Executive

By the end of September, 295 pubs shut, with the BBPA warning that successive Budgets have exacerbated the huge tax and regulatory burden that the industry already faced, and which is at the heart of many closures.  

England lost 226 pubs in total, with the South East seeing the highest number of closures (42), followed closely behind by the North West (39) – the North East saw the fewest closures (11). 

Respectively, Scotland and Wales saw 64 and 5 pubs shut their doors.  

The BBPA said the impact of all the Budget measures in November 2025 added an eye-watering extra £322m of business costs for pubs and brewers, meaning many have been forced to make incredibly tough decisions.  

The scale of closures underlines exactly why the Prime Minister’s promised 20% business rates cut could not be more welcome, the trade body said.  

KEY POINTS:

  • South East had highest number of closures followed by North West
  • 2025 Budget measures added extra £322m of costs for sector
  • Treasury loses, on average, £200,000 in tax receipts every time a pub shuts

Emma McClarkin, CEO of the British Beer and Pub Association, said: “When a local closes, the damage is felt far and wide. It’s not just workers, communities, our heritage and high streets who lose out when a pub closes – the Treasury loses, on average, £200,000 in tax receipts every time a local calls last orders.  

“We wholeheartedly welcome the Prime Minister’s promise to cut business rates by 20% for pubs from next year which, when it comes in to effect, will be a significant help. This will build on the initial commitments to wider reform including the pub valuation methodology and a pub-specific relief recognising their unique social and community value.  

“The Prime Minister has pledged that the cavalry is coming, which is why we’re asking Government to tackle the root of the problem through a permanently fair and sustainable rates burden, freezing beer duty, increasing draught relief and reviewing employment costs for under-25s.  

“This will mean we can carry on keeping people in jobs, boosting the economy, and being at the heart of communities.”  

The British Beer and Pub Association is calling on the Government to use the Budget to permanently and fairly reform business rates, freeze beer duty, increase draught relief and review employment costs, especially for under-25s.  

For every three pounds spent in a pub, one pound goes straight to the tax man, the BBPA stressed.   This is why the BBPA is also backing the wider hospitality industry campaign for fairer VAT rates.  

In 2025, the total net pub closure figure in the UK was 336. Over the last five years, there were nearly 2,200 net pub closures bringing the total number of pubs to 43,656 by the end of 2025.

Less booze than bread!

British Beer and Pub Association urges Government to change description rules as supermarket staples can contain more alcohol than no-alcohol beers

  • At 0.05% UK non-alcoholic thresholds are most stringent in the world 
  • Restrictions mean supermarket staples such as yoghurt and bread can contain more alcohol than No alcohol beer
  • BBPA calls on Government to change descriptions to support public health goals and so the public have a greater variety of No alcohol beers

The BBPA is calling for a change in UK No/ Low definitions considering many supermarket staples contain more alcohol than No alcohol beer and current rules penalise British brewers.  

The leading trade body says a slight change in the threshold to 0.5% ABV would lead to brewers being able to create many more No/ Low alcohol beers, which would help people choose moderation if they want to. 

Currently, ‘alcohol free’ beer in the UK must be 0.05% ABV or below, whereas non-alcoholic beer from many other European nations and international markets is allowed up to 0.5% ABV. 

Brewers across the UK are investing a huge amount of time and money in creating innovative products, and 86% of pubs now stock No/ Low options. On top of this, 8% of pubs are serving a No/ Low option on draught, proving how the industry is helping public health goals and helping pubs be even more inclusive. 

However, given the lack of a level playing field, British brewers are effectively penalised – even in the UK – as they cannot compete with European brewers who have greater freedom to make No/ Low beer. 

In the UK an ‘alcohol free’ beer must be below 0.05% ABV whereas non-alcoholic beer from many other EU and international markets adhere to a slightly higher threshold of 0.5% ABV. 

With the sector forced to work within such a restrictive threshold, the BBPA has pointed out that many products contain more alcohol than a 0.05% beer. 

This was acknowledged in the previous Government’s evidence review published alongside their consultation on No/ Low definitions. The then Government recognised that foods such as bread, fruit juice and yoghurt can all contain a level of alcohol that is undeclared and does not need to be labelled or indeed is a cause for concern. 

Specifically, their evidence found levels of up to 1.2g of alcohol per 100g of bread, and 0.77g of alcohol per litre of fruit juice. The Government also highlighted that an individual would need to drink 8 pints of 0.5% ABV in an hour to reach the same blood alcohol content as if they consumed one 4% ABV pint of beer. 

This highlights the challenges and unfairness faced by UK brewers. 

Emma McClarkin, CEO of the BBPA said: “It couldn’t be clearer that British brewers want to create more No/ Low options and cater to booming demand but are at a distinct disadvantage when compared to international neighbours. 

“Our sector is committed to tackling harmful alcohol consumption, proven by how brewers are creating more No/ Low products, and more pubs are stocking these products. 

“Changing current highly restrictive ABV thresholds to match international neighbours will help brewers create more products and give consumers more options when choosing moderation, all of which will help public health goals.” 

From a public health perspective there is clear and robust evidence that no and low alcohol drinks are effective in supporting those seeking to moderate or reduce their alcohol consumption.     

The No/ Low category is coming off a recording breaking 2024 and Christmas period with up to 140 million pints expected to have been drunk last year. However, there remains huge scope for further growth. 

With this in mind, it is vital that the No/ Low category is supported so that it can continue to grow and be an option those who are choosing moderation, the BBPA said.