Figures from the Campaign for Real Ale (CAMRA) revealed 303 pubs across England, Scotland and Wales closed in the first three months of 2025, with 46 more converted into other uses.
In 2024, 1,062 pub businesses were lost and 210 were converted into other uses like shops or housing, leaving buildings standing empty, according to CAMRA.
The consumer group warned the increase to Employer National Insurance Contributions (ENICs), teamed with the reduction in business rates relief, could fore more operators to close their doors for good.
Heart of the community
CAMRA Chairman Ash Corbett-Collins said: “Hundreds of pubs have already stopped trading this year. How many more need to shut before the Government takes notice?
“It’s important for customers to remember price hikes at the bar are the fault of the Government, not hard-working publicans.
“The Chancellor [should] look closely at the rate of pub closures between now and the Budget in the Autumn, to think again on the Employer National Insurance hike for pubs and to cut rates of VAT and duty charged on beer and cider served in pubs.
“Without action from Governments in all four nations, we risk losing more pubs which are a vital part of our social fabric and are at the heart of community life up and down the UK.”
Operators also face a reduction in business rates, increases to the National Living Wage and Extended Producer Responsibility (EPR) costs this month.
The Night-Time Industries Association (NTIA) estimated operating costs had already surged by some 40% in recent years,
It further predicted the latest tax hikes could add between £30k and £80k to business costs, adding some businesses have already made drastic to cuts to survive.
Irreversible decline
A flash poll of 200 operators, conducted by the trade association, revealed nearly half (46%) of respondents expected their workforce to shrink within the next 12 months.
In addition, 62% anticipated having to reduce staff numbers and operating hours. The majority - 85% - identified rising operational costs as their biggest economic challenge.
As a result, 88% of businesses planned to increase prices in the next year, with more than half (56%) expecting hikes of between 5-10% just to remain viable.
NTIA CEO Michael Kill said: “The Government is sleepwalking into disaster. Businesses have cut everything they can - jobs, hours, services - just to survive, and yet they’re still being punished.
“These tax hikes will be the final nail in the coffin for thousands. The Government has refused to listen, and now they are actively pushing businesses into collapse.
“If they do not act now, they will be responsible for the destruction of an entire sector, the loss of countless jobs, and the irreversible decline of our nightlife economy.”
