The British Beer and Pub Association has demanded urgent action on business rates reform from the government as new data from Altus Group reveals the number of pubs in England and Wales now stands at just 38,989.

The BBPA has demanded urgent action on business rates reform from the government after commercial real estate analyst the Altus Group revealed the number of pubs in England and Wales dropped below 39,000 for the first time this December.

According to the most recent figures, more than 2,000 pubs have closed since the start of 2020, with 412 pubs either demolished or repurposed over the last 12 months alone, prompting calls for swift and decisive action on financial obstacles.

“For the sector to remain a stalwart of the economy and continue to be the beating heart of our communities, the Government must swiftly deliver permanent and meaningful business rate reforms,” said BBPA CEO Emma McClarkin, who noted the brewing and pub industries “pour billions into the economy and support more than a million jobs.”

“We stand ready to help the Government bring in sorely-needed change that will break down the barriers that stop our sector from contributing even more to the economy and employing more people than ever before.”

The decline, which was tracked using official ONS statistics, is the sharpest since 2021 when pandemic restrictions and rising energy prices combined to cause havoc in the sector, with many fearing that a similar “perfect storm” of challenges could occur in the new year.

“The latest figures come amid a backdrop of rising costs and cautious spending among consumers who have witnessed higher mortgages and rents,” noted City AM. “In April next year, a number of policies from Rachel Reeves’s autumn Budget will come into force which are also due to drive a sharp jump in costs for many pub operators.”

The sentiment was echoed by Atus Group’s Alex Probyn, who said “many publicans that I speak to are extremely worried that this could be their last Christmas given the combination of hiking the amount employers will have to pay in National Insurance, increases to the minimum wage and the business rates discount being slashed from 75 percent to 40 percent in 2025.”

“Many pubs simply will no longer be viable making plots even more attractive for alternative investment.”