UK Government Announces £100m Annual Support for Pubs as Industry Fears Widespread Closures
The UK government is set to unveil a new support package worth around £100m per year for pubs, following widespread warnings of closures and job losses due to recent changes in business rates. The relief package comes after officials admitted they had underestimated the financial impact on the sector.
This move follows concerns over the past year that the industry is struggling to cope with increased costs, including higher employer national insurance contributions, rising minimum wages, energy costs, and inflation. In England and Wales alone, one pub closed every day in 2022 due to these pressures, according to analysis by tax specialist Ryan. The number of pubs has fallen to 38,623 as of 2025, down from 39,989 the previous year.
The government's support package is seen as a significant step forward for the industry, which has been advocating for relief in light of changes to business rates announced in November's budget. While the UKHospitality trade body welcomed this development, the wider hospitality sector remains concerned that similar support measures may not be forthcoming.
In recent weeks, Chancellor Rachel Reeves has acknowledged the challenges faced by pubs and has been working closely with the industry to provide targeted support. This new relief package is expected to address some of these concerns, although it is unclear whether it will be enough to prevent further closures and job losses in the sector.
The government's decision comes after public outcry over the impact of business rates on high streets across the UK. While some have defended the changes as "sensible" and beneficial for struggling areas, others argue that they are having a devastating effect on small businesses and local economies.
The UK government is set to unveil a new support package worth around £100m per year for pubs, following widespread warnings of closures and job losses due to recent changes in business rates. The relief package comes after officials admitted they had underestimated the financial impact on the sector.
This move follows concerns over the past year that the industry is struggling to cope with increased costs, including higher employer national insurance contributions, rising minimum wages, energy costs, and inflation. In England and Wales alone, one pub closed every day in 2022 due to these pressures, according to analysis by tax specialist Ryan. The number of pubs has fallen to 38,623 as of 2025, down from 39,989 the previous year.
The government's support package is seen as a significant step forward for the industry, which has been advocating for relief in light of changes to business rates announced in November's budget. While the UKHospitality trade body welcomed this development, the wider hospitality sector remains concerned that similar support measures may not be forthcoming.
In recent weeks, Chancellor Rachel Reeves has acknowledged the challenges faced by pubs and has been working closely with the industry to provide targeted support. This new relief package is expected to address some of these concerns, although it is unclear whether it will be enough to prevent further closures and job losses in the sector.
The government's decision comes after public outcry over the impact of business rates on high streets across the UK. While some have defended the changes as "sensible" and beneficial for struggling areas, others argue that they are having a devastating effect on small businesses and local economies.