London Daily

Focus on the big picture.
Tuesday, Apr 07, 2026

Pub trade warns of 2,000 closures without budget aid

Pub trade warns of 2,000 closures without budget aid

A publican tells Sky News that without government support for energy costs being maintained, she will be forced to close her kitchen and cut jobs to survive.

A further 2,000 pubs are at risk of closure, threatening 25,000 jobs, unless the chancellor comes to the sector's aid in this month's budget, according to an industry body.

The British Beer and Pub Association (BBPA) cited research by Oxford Economics which forecast 288 million fewer pints would be sold in the next financial year as the cost of living crisis facing punters combines with the cost of doing business crisis.

Sales volumes have already slipped as the squeeze on household budgets forces more people to drink and eat at home.

The BBPA told Sky News that 450 sites closed last year alone as energy-driven inflation accelerated, despite government support.

It builds on a significant decline since 2000, with a quarter of pubs - 13,000 - being lost.

The BBPA used a submission to chancellor Jeremy Hunt, in advance of his budget on 15 March, to declare that financial support for publicans, breweries and staff training to retain workers were vital, arguing that the pub is at the core of British society.

It pointed to rising energy, food and employment bills among the reasons why costs are unsustainable.

"With cost pressures and slowing consumer spend, combined with a further duty increase in August, there are significant fears of widespread closures, with a worrying 2,000 pubs estimated to be at risk," its statement said.

"And with the current Energy Bill Relief Scheme support ending on 31st of March, many pubs and breweries will again be subject to rocketing bills that threaten them to declare last orders once and for all."

It said that one pound in every three spent in pubs currently made its way to the Treasury.

The BBPA's wishlist included a freeze to duty rates and a "significant increase" in the discount for draft beer sold in pubs.

Publican Emma Shepherd, who runs the Blue Ball Inn in Worrall near Sheffield with her husband, has campaigned for more financial aid for the hospitality sector.

She described how soaring energy prices had already forced the closure of its kitchen on two days per week despite government support for energy costs.

The Blue Ball Inn belongs to Admiral Taverns and is run by Emma and Carl Shepherd.


She warned that the prospect of any easing from April could mean they have to let staff go and shut the kitchen.

"We're in a perfect storm... working harder for less," she explained, describing how beer, food and local regulations had added to their expenses.

"20% VAT on everything is a huge cost to small businesses that are working on small margins and the margins are getting smaller," she said.

"The government hailed a reduction for beer tax but we don't see a reduction at our end because the beer producers are facing the same energy costs as we are."

Emma McClarkin, the chief executive of the BBPA, said pubs in rural areas were at particular risk, leaving more communities facing the prospect of being without a local.

"This really is a make or break moment for our pubs and our brewers," she said.

"With everything that's hitting them at the moment post pandemic, recovery has been really, really difficult and with cost inflation biting, labour shortages as well as those high energy costs, we're really struggling to find our feet again as an industry... without that intervention (from the government) we could lose 2,000 pubs and 25,000 jobs."

Newsletter

Related Articles

0:00
0:00
Close
Operation Europe: Trump Deploys Vance to Hungary to Save the EU
King Charles Faces Criticism From Some UK Christians Over Absence of Easter Message
Former UK Defence Secretary Raises Concerns Over Ability to Counter Iran Missile Threat
UK Signals Non-Involvement in Iran Conflict as Trump Reasserts Firm Deterrence Stance
US and UK Strengthen Medical Device Cooperation Following Tariff Removal
Trump Backs Steve Hilton for California Governor, Highlighting Reform Agenda
UK Seeks Closer Ties With Anthropic as AI Policy Divergence Emerges Across Atlantic
Experts Warn of Evolving Extremism After Teens Arrested in UK Ambulance Arson Case
UK Convenes Talks to Safeguard Shipping Through Strait of Hormuz After Conflict Escalation
Trump Highlights Strong Leadership in Critique of UK Stance on Iran
UK Authorities Review Kanye West’s Entry Status Following Festival Backlash
UK Considers Deploying Aircraft Carrier for US Independence Day Celebrations Amid Renewed Transatlantic Focus
United Kingdom Moves to Attract AI Firm Anthropic Amid Tensions with US Defense Officials
RAF Intercepts Iranian Drones in Middle East to Defend Allied Security Interests
Labour Signals Shift on Foie Gras and Fur Restrictions to Advance EU Trade Talks
Seven Arrested Near RAF Base as UK Authorities Respond to Protest Activity
Economic Pressures Mount as Analysts Warn UK Growth Is Being Constrained by Policy Burdens
UK Green Party’s Push for Church-State Separation Sparks Debate Over National Identity
Strategic Island Emerges as Growing Challenge for United States and United Kingdom Defense Planning
Pepsi Pulls Sponsorship from UK Festival Following Backlash Linked to Kanye West
Signs Emerge of Declining Enthusiasm for Social Media in the United Kingdom
Security Alert Raised Ahead of Meghan Markle’s Planned Visit to Australia
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
Woman Linked to UK’s First All-Female Terror Plot Faces Deportation
Downed US Aircraft Over Iran Linked to Operations from UK Airfield
Two Men and Teen Detained in UK Following Attack on Jewish Charity Ambulance
UK Police Launch Inquiry After Firearms Left Unattended Outside Mayor’s Residence
Giuffre Family Calls on King Charles to Meet Epstein Survivors During US Visit
Amber Wind Warning Issued as Storm Dave Approaches Parts of the United Kingdom
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
×