A recent study has found that more pubs closed in London in the first half of this year than in any other region in England.

According to data compiled by real estate analysts Altus Group, the capital saw 46 pubs shutter their doors by the end of June. Across the UK as a whole, 383 pubs closed during the same period, almost matching the total number lost in the entire year of 2022 when 386 pubs closed.

The government has stated that it is providing assistance to venues by offering a 50% reduction in business rates and freezing alcohol duty rates.

During the first quarter of 2023, an average of 51 pubs closed every month, a figure that rose to 77 per month between April and June, as indicated by the study.

Wales experienced the highest number of pub closures in the UK, with 52 establishments shutting down.

According to the most recent London Assembly pub audit, the number of pubs in most London boroughs has decreased over the past two decades. However, employment in the sector has increased as the average size of pubs has grown.

While the decline in the number of pubs reflects a nationwide trend, the number of employees in London's pub sector has grown by 12%, surpassing the national average of 3%.

Alex Probyn, President of Property Tax at Altus Group, cautioned that more pubs would continue to disappear unless the Chancellor extends business rates relief beyond the spring of 2024.

Currently, pubs, along with other eligible businesses in the hospitality, leisure, and retail sectors, receive a 75% discount on their business rates for the 2023/2024 tax year, capped at £110,000 per business.

This relief is scheduled to end on March 31, 2024, and business rates are also set to increase next April in line with September's headline rate of inflation, potentially resulting in more than a 6% increase in bills for the following year.

"With energy costs up 80% year-on-year in a low-growth, high-inflation, and high-interest-rate environment, the last thing pubs need is an average business rates increase of £12,385 next year," Mr. Probyn stated.

A government spokesperson responded, stating, "We recognize that pubs are key drivers of local economies, but no national government can control the global factors pushing up the price of energy and other business costs."

"We are supporting hospitality businesses and those in the supply chain across the UK with 50% business rates relief, freezing alcohol duty rates on beer, cider, wine, and spirits, and reducing employer national insurance. This is in addition to the billions in grants and loans offered throughout the pandemic."

Regarding pubs grappling with business rates, a spokesperson for the Mayor of London noted that Sadiq Khan had called for "fundamental reform" of the business rates system, including "full devolution of business rates tax policy."

"It's vital that ministers step forward and recognize the value of our local pubs by offering greater support to operators and doing more to tackle the cost-of-living crisis," they added. Photo by  Stephen Craven, Wikimedia commons.