Representing over 13,500 members across the UK - the majority single-site independents - the BII said that following April’s tax rises and continued inflationary pressures, only one in three pubs is now profitable.
35% of pubs at risk
The institute’s latest data shows that 35% of pubs are at risk of closure, despite “strong trading” this year.
Rising costs have forced 74% of operators to cut staff hours and 70% to reduce headcount, with licensees working unsustainable hours to keep businesses afloat.
Alton called on the Government to take urgent action on three key fronts:
- VAT reform: Permanently reduce VAT on pub sales to 10%, to boost resilience, create jobs and limit price increases for consumers
- Business rates: Deliver permanent, real-terms reductions in bills from April 2026
- Employment incentives: Reverse recent national insurance changes and introduce tax reliefs for pubs employing under-25s and those returning to work
‘Urgent action’
According to BII data, fairer taxation would have an immediate impact. 73% of pubs would increase investment, 60% would extend staff hours, and half would hire more employees.
Alton said: “Since the Covid pandemic, the Government has recognised the huge value of our pubs, with the Prime Minister recently stating that ‘when our locals do well, our economy does too.’ This recognition must now be matched with urgent action at the Budget to drive local economic growth by reducing the unfair tax burden.
“This will create skilled jobs and allow pubs to continue to serve their communities. Without it, many simply will not survive.”
He added that closures would mean “lost jobs, lost tax revenue and immeasurable damage to communities in every town, village and high street across the UK.”
The BII is urging the Chancellor to “seize the opportunity” to invest in the Great British pub, describing the sector as “the backbone of our communities” and a proven engine of local employment and growth.
