London Daily

Focus on the big picture.
Wednesday, Jan 28, 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
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
PLA opens CMC probe of Zhang Youxia, Liu Zhenli over Xi authority and discipline violations
ICE and DHS immigration raids in Minneapolis: the use-of-force accountability crisis in mass deportation enforcement
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
UK Finance Minister Reeves to Join Starmer on China Visit to Bolster Trade and Economic Ties
Prince Harry Says Sacrifices of NATO Forces in Afghanistan Deserve ‘Respect’ After Trump Remarks
Barron Trump Emerges as Key Remote Witness in UK Assault and Rape Trial
Nigel Farage Attended Davos 2026 Using HP Trust Delegate Pass Linked to Sasan Ghandehari
Gold Jumps More Than 8% in a Week as the Dollar Slides Amid Greenland Tariff Dispute
BlackRock Executive Rick Rieder Emerges as Leading Contender to Succeed Jerome Powell as Fed Chair
Boston Dynamics Atlas humanoid robot and LG CLOiD home robot: the platform lock-in fight to control Physical AI
United States under President Donald Trump completes withdrawal from the World Health Organization: health sovereignty versus global outbreak early-warning access
FBI and U.S. prosecutors vs Ryan Wedding’s transnational cocaine-smuggling network: the fight over witness-killing and cross-border enforcement
Trump Administration’s Iran Military Buildup and Sanctions Campaign Puts Deterrence Credibility on the Line
Apple and OpenAI Chase Screenless AI Wearables as the Post-iPhone Interface Battle Heats Up
Tech Brief: AI Compute, Chips, and Platform Power Moves Driving Today’s Market Narrative
NATO’s Stress Test Under Trump: Alliance Credibility, Burden-Sharing, and the Fight Over Strategic Territory
OpenAI’s Money Problem: Explosive Growth, Even Faster Costs, and a Race to Stay Ahead
Trump Reverses Course and Criticises UK-Mauritius Chagos Islands Agreement
Elizabeth Hurley Tells UK Court of ‘Brutal’ Invasion of Privacy in Phone Hacking Case
UK Bond Yields Climb as Report Fuels Speculation Over Andy Burnham’s Return to Parliament
America’s Venezuela Oil Grip Meets China’s Demand: Market Power, Legal Shockwaves, and the New Rules of Energy Leverage
TikTok’s U.S. Escape Plan: National Security Firewall or Political Theater With a Price Tag?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
The Greenland Gambit: Economic Genius or Political Farce?
×