378 pubs expected to shut this year as industry body issues warning

The decline is being blamed on tax and regulatory burdens

Great Britain is facing the worrying prospect of losing more than one boozer daily. The British Beer and Pub Association (BBPA) predicts 378 pubs across England, Wales and Scotland will be forced to shut their doors for good this year.

At the moment, sunny skies are encouraging punters to rush to beer gardens, providing some much-needed relief for the pub trade. But industry experts have warned that most of that cash is heading straight to the Treasury.

The BBPA revealed that for every £3 spent at a pub, £1 heads directly “to the tax man”. The association also highlighted the knock-on impact these shutdowns will have on hospitality employment, breweries and even agricultural workers.

The BBPA’s statistics represent a troubling jump from last year’s data, which recorded 350 pub closures. The organisation attributes this surge to hefty business rates imposed on establishments alongside other pub-specific expenses such as beer duty and VAT.

Compounding matters is the employer’s national insurance contributions hike introduced in April and fresh waste disposal regulations that have ramped up expenses for glass bottle recycling. BBPA members produce 90% of British beer and operate over 20,000 pubs, according to Sky News .

The association cautioned that these closures could result in more than 5,600 job losses. Emma McClarkin, the chief executive of the BBPA, said: “Pubs are trading well but most of the money that goes into the till goes straight back out in bills and taxes.

“For many it’s impossible to make a profit which all too often leads to pubs turning off the lights for the last time. When a pub closes it puts people out of a job, deprives communities of their heart and soul, and hurts the local economy.

“However, it’s not too late to change this sad state of affairs. We know Government recognises the economic and social value of pubs and we’re not asking for special treatment, we just want the sector’s rich potential unleashed.

“We’re calling on Government to proceed with meaningful business rates reform, mitigate these eye-watering new employment and EPR costs, and cut beer duty.” By reducing cumulative tax and regulatory burdens on the industry, the government could drive more investment and jobs.

While also safeguarding venues beloved by the public and in some cases are the last remaining establishments for communities to get together, according to the trade body. The association noted that pubs are often disproportionately affected by business tax rates in particular.

These are based on a property’s value, estimated by the Valuation Office Agency in terms of how much it would cost to rent the premises. Pubs, typically housed in high-value buildings, often operate on slim profit margins.

With the added burden of extended producer responsibility costs, the pub sector has shelled out an extra £60million a year, as reported by The Guardian. The Labour government has confirmed plans to overhaul the existing business rates system.

However, the industry is still eagerly awaiting an interim report that was due over the summer.

Sign up for the latest breaking news and top stories from StokeonTrentLive on WhatsApp