With rising costs and higher taxes squeezing the sector, an average of one pub a day closed permanently across England and Wales in 2025, highlighting mounting pressure on hospitality businesses. If the government doesn’t listen carefully to industry warnings particularly over business rates, 2026 will see that one a day multiply significantly. Are you listening Rachel Reeves?
One pub closed permanently every day across England and Wales during 2025 as rising costs continued to squeeze the hospitality sector.
Official Government statistics show that 366 pubs were demolished or converted to other uses in the year to December. Analysis by property tax specialists at Ryan found the total number of pubs in England and Wales – including those vacant or being marketed to let – fell to 38,623, down from 38,989 a year earlier.
Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, said the closures represent a permanent loss rather than a temporary downturn.
“These pubs have closed permanently, not temporarily,” he said, “The buildings have been demolished or converted into housing, offices, nurseries, cafés or other uses. Once repurposed, they almost never return to pub use.”
The figures underline ongoing pressure on the hospitality sector, with almost 2,000 pubs disappearing over the past five years, although the pace of decline has slowed slightly.
Every region of England and Wales recorded a net fall in pub numbers during 2025. The largest declines were seen in the East Midlands, the North West and Yorkshire and the Humber. The closures came during a year when pubs faced higher costs, including increases to the national minimum wage and national insurance contributions introduced in April. Further pressure is expected in 2026, with the average business rates bill for pubs set to rise from April following an average 30 percent increase in rateable values.
“This data should serve as a wake-up call. It reflects deep structural pressures on pubs,” continued Probyn. “Many survived the pandemic through resilience and community support, only to be pushed to the brink by rising costs and a rating system that no longer reflects economic reality.”
