Labour is set to unveil support for the struggling pub industry in the UK, with reports showing that two pubs are closing each day. The government is anticipated to introduce a set of initiatives as early as Tuesday to address the looming tax increase.
Chancellor Rachel Reeves has acknowledged the challenges faced by publicans and is prepared to take action, particularly concerning business rates. However, it remains uncertain whether the upcoming announcement will offer temporary assistance or permanent tax relief, which the industry is urgently seeking to prevent further closures.
Recent data revealed that 188 pubs shut down in the last quarter of 2025. The majority of these closures, 123 in total, were community pubs that heavily rely on beverage sales for survival. Additionally, 56 food-oriented pubs and nine high street locations ceased operations, as reported by NIQ and CGA intelligence.
The Mirror has been advocating for the pub sector through its Your Pub Needs You campaign, calling for aid for landlords and the communities they serve. While any additional support will be welcomed, many in the pub trade believe that significant measures are necessary to stem the tide of closures, which has surpassed 2,000 since the beginning of 2020.
Pubs are facing a multitude of challenges, including changing consumer habits, wage increases, and escalating energy expenses. However, the most imminent threat is the proposed surge in business rates due to the removal of Covid-era relief and upcoming revaluations in April.
The Treasury asserts that it is already offering a £4.3 billion support package to mitigate bill increases for pubs. The rumored assistance for pubs has sparked calls for similar aid to be extended to other businesses impacted by rate hikes.
According to NIQ data, the number of hospitality establishments in the UK decreased by 382 from September to December, amounting to a total of 98,914 sites and equating to over four net closures daily. Over 240 restaurants shuttered during the same period, despite it typically being a busy time for the industry.
There is concern that closure rates could surge in the new year as financially strained customers reduce spending. NIQ also reported the closure of 28 nightclubs and 39 sports and social clubs in the past year.
Karl Chessell of NIQ highlighted the accelerated closures in the final quarter of 2025 due to rising operating costs, with the decline occurring during a crucial trading period for the hospitality sector. He further expressed concerns about the challenging conditions expected in 2026, emphasizing the need for increased support and consumer spending to prevent further closures.
A spokesperson from the Treasury emphasized the government’s commitment to supporting pubs, citing the £4.3 billion relief package announced in the Budget as a measure to shield most ratepayers from business rates hikes.