London Daily

Focus on the big picture.
Thursday, Oct 23, 2025

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
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
×