About 360 pubs are expected to close their doors for good in 2026, according to research from the British Beer and Pub Association (BBPA), as the industry urges Andy Burnham to do more on tax relief
A pub is set to have closed its doors every day this year, as hospitality leaders say Andy Burnham’s tax cuts for hospitality have not gone far enough. Around 360 pubs are expected to have called last orders in the whole of 2026, with 295 watering holes having shut for good so far this year, according to research from the British Beer and Pub Association (BBPA).
Andy Burnham has placed support for pubs at the heart of his pledge to revive British high streets, but the industry body believes the Prime Minister still needs to tackle “the root of the problem”.
The loss of one pub for every day of this year will have cost about 5,000 jobs, the BBPA has found, with more than half of these workers being aged under 25.
The government could lose nearly £72m in tax receipts due to these closures because the typical pub contributes about £200,000 to the Treasury, the trade body said, as reported by City AM. Last year, 336 pubs closed in the UK. Nearly 2,200 pubs have shut over the last five years.
The BBPA says Britain’s pubs are still recovering from last year’s Budget, when then-Chancellor Rachel Reeves ‘ tax raid piled an extra £322m in costs onto pubs and brewers.
In one of his first acts as Prime Minister, Andy Burnham announced a 20 per cent cut to business rates for pubs, clubs and live music venues, which the BBPA said was “wholeheartedly welcome”. Error: Model returned no result.
Earlier this year, the British Beer & Pub Association, UK Hospitality, the British Institute of Innkeeping and Hospitality Ulster all said in a joint statement: “The new prime minister’s action to back hospitality has clearly driven a boost in the sector’s optimism, yet significant challenges remain. The support for pubs and live music venues on business rates was a great first step and now we need to see wider support and conditions to allow the entire hospitality sector to grow and create jobs.
“Our tax burden – amongst the highest in the economy – along with new regulatory costs is overwhelming us and the real victims are high streets, jobs and communities. A lower rate of VAT, wider permanent business rates reform and changes to employer NICs [national insurance contributions] would help deliver the prime minister’s bold ambitions for every postcode.”
In response, a government spokesman said: “The chancellor prioritised support for the hospitality industry in his first week in the job when he cut business rates by 20% for pubs, social clubs and live music venues – saving thousands of locals over £1,000 a year. This is on top of providing a tax break on poured pints and capping corporation tax.”