According to analysis of insolvency data by accountancy group UHY Hacker Young, the rise was largely driven by a 33% increase in the number of pub businesses shuttering in Scotland where the number of failures was up from 40 to 53 last year.
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For England and Wales, pub and bar business insolvencies increased from 729 to 736.
The 789 pubs and bars groups in England Scotland and Wales that fell into insolvency last year was more than double the 367 in 2020, the accountancy firm said.
Firefighting operators
UHY Hacker Young partners Peter Kubik highlighted the continued pressures operators are facing including ongoing rising costs in staffing and energy as well as food and drink alongside increased red tape such as changes to waste disposal regulations.
He said: “Pubs and bars are firefighting on several fronts and with the exception of Covid-19 and 2024, insolvencies have risen every year over the past decade. I would not be surprised to see more.
“Pub groups will be worried how war in the Gulf is going to impact their energy prices. The Government will be giving pubs a 15% discount on pub and bar groups’ business rates bills from April but it is simply not enough when you look at the costs and burdens they face.
“It is like giving someone facing a tidal wave in a small boat and a bucket.”
Changing customer base
Furthermore, Kubik outlined the impact of the increasing number of non-drinkers with Office of National Statistics data showing a quarter (24%) of the population not touching alcohol during 2024 - up 19% from 2022 and rising to 39% for t hose aged 26 to 24.
He added: “The demographic and behavioural changes pubs and bars face are particularly concerning.
“Young people are drifting away from having a drink after work and drinking at all, which means pubs and bars’ customer base is getting older and will continue to decline unless something changes.”
Previous analysis from RSM UK found insolvencies in the accommodation and food services sector was up 9% month-on-month to 223 in January 2026.
However, the research also showed insolvencies fell by almost a fifth (18%) from 273 in January 2025.
