Data from real estate adviser Altus Group reveals that the number of pubs closing permanently has risen by 50% over the past three months as businesses struggle with rising costs and bills.
During the three months to the end of September 2022, Altus’ analysis of Government property tax records shows that 150 pubs were either demolished or converted into other types of use such as homes and offices. This number is up 50% on the 200 pubs that closed for good during the first six months of 2022.
Wales and the north west of England were hardest hit in terms of closure numbers.
The total number of pubs, including those vacant and being offered to let, fell below 40,000 for the first time to 39,973 at the end of June compared with 40,173 at the end of the 2021 calendar year.
With pubs struggling with soaring costs and fragile consumer confidence, Robert Hayton, UK president at Altus Group, describes last month’s mini budget as containing ‘glaring omissions’. “It beggars belief that a self-proclaimed low tax Government could allow pubs lose to their business rates discount next April as well as seeing any benefit from next year’s revaluation potentially wiped out by inflation,” he says.
Until the end of March next year, pubs receive a 50% discount on their business rates bills worth on average £9,563 per pub although that support is capped at £110,000 per business and is due to end on 1 April 2023.
Last month pub giant JD Wetherspoon announced it was putting 32 of its pubs up for sale for commercial reasons.