Labour is set to announce support for struggling pubs in the UK, with reports indicating that two pubs are closing each day due to financial difficulties. The government is preparing to introduce a set of measures to address this issue, potentially as soon as Tuesday, in response to growing concerns about an impending tax increase.
Chancellor Rachel Reeves has acknowledged the challenges faced by pub owners and is prepared to take action, particularly regarding business rates. However, it remains uncertain whether the forthcoming announcement will offer temporary relief or permanent tax cuts, which the industry is urgently requesting to prevent further closures.
Recent data shows that 188 pubs shut down in the last quarter of 2025, with a significant number being community pubs that rely heavily on alcohol sales. Additionally, the closure of 56 food-led pubs and nine high street establishments was reported by NIQ and CGA intelligence.
The Mirror has been advocating for the pub sector through its “Your Pub Needs You campaign,” urging for assistance for landlords and their local communities. Despite the anticipated aid, many in the industry believe that drastic measures are necessary to stem the closure trend, which has seen over 2,000 pubs shuttered since the beginning of 2020.
Pubs are facing various challenges, including changing consumer habits, wage increases, and escalating energy costs. However, the most immediate threat stems from the proposed surge in business rates due to the phasing out of Covid-related relief measures and upcoming revaluations in April.
While the Treasury has emphasized a £4.3 billion support package to limit the impact of rate hikes on pubs, calls have arisen for similar assistance to be extended to other businesses impacted by rising rates.
Recent NIQ data revealed a decline of 382 hospitality venues in the UK from September to December, totaling 98,914 sites. This equates to over four closures per day, including the closure of more than 240 restaurants during the same period, despite it typically being a busy time for the industry.
Concerns are mounting that the rate of closures could escalate in the new year as financially strained consumers reduce spending. NIQ’s findings also indicate the closure of 28 nightclubs and 39 sports and social clubs in the past year.
Karl Chessell from NIQ expressed worry over the accelerating closures in the final quarter of 2025, attributing it to the relentless rise in operating costs faced by the hospitality sector. Without additional support and increased consumer spending, he foresees further closures in the coming months.
In response, a Treasury spokesperson reiterated the government’s commitment to supporting pubs, highlighting the £4.3 billion relief package announced during the Budget to shield most ratepayers from business rate increases.