The number of pubs in England and Wales being demolished or converted for alternative uses has risen by 50% in the latest quarter, according to official government

statistics.

Data from Altus Group, commercial real estate specialists, shows that 230 pubs permanently closed between April 1 and June 30 due to the impact of rising costs and increased pressure on consumer finances.

This figure represents a significant increase of 50.3% compared to the 153 pubs that closed during the first quarter of 2023.

It equates to over two pubs closing every day during the first half of the year, highlighting the severity of the issue.

As of the end of June 2023, the total number of pubs in England and Wales, including vacant ones available for lease, stood at 39,404.

Over the past six months, a total of 383 pubs have either been demolished or repurposed for other uses, such as residential properties, offices, or even day nurseries. This marks a sharp acceleration compared to the 386 pubs that vanished throughout the entirety of 2022.

Wales saw the highest number of pub closures during the first half of the year, with 52 establishments shutting down. Additionally, both London and the northwest regions lost 46 pubs each.

Alex Probyn, President of Property Tax at Altus Group, called on Chancellor Jeremy Hunt to take action in his autumn statement in November to alleviate the burden of high business rates on the sector.

Currently, businesses subject to business rates, which is the property tax affecting high street firms, are set to face an inflation-linked increase in April unless the government intervenes. This increase is expected to raise bills by over 6% next year.

Mr. Probyn commented, "In a low-growth, high-inflation, and high-interest rate environment, with energy costs up 80% year-on-year, the last thing pubs need is an average business rates hike of £12,385 next year."

Pubs, along with other eligible hospitality, leisure, and retail businesses, currently benefit from a 75% discount on their business rates bills for the 2023/2024 tax year, capped at £110,000 per business. However, this discount is set to expire on March 31, 2024. Photo by Keith Evans, Wikimedia commons.