More than 200 pubs in the East Midlands risk closure next year unless the Government intervenes to reduce business rates. Research from the Centre for Economic and Business Research, commissioned by the British Beer and Pub Association (BBPA), indicates 226 pubs could shut, threatening 1,486 jobs.
The sector is set to face a significant cost increase in 2026 due to the withdrawal of business rates relief and the revaluation of business properties. Without action, pubs’ business rates bills could rise by more than 50%, exacerbating existing financial pressures.
Pubs currently contribute 2.1% of the UK’s Business Rates bill despite generating only 0.4% of total turnover. At the average ratio, their bill would be £130 million rather than £637 million, meaning the sector overpays by £507 million annually.
The BBPA projects that, without reform, the UK could lose 2,000 pubs next year, affecting local economies and employment. A proposed 20p reduction in the pound for pubs could prevent almost 40% of closures, safeguarding 5,400 jobs and adding nearly £100 million in Gross Value Added (GVA) to the economy.
Alongside business rates reform, the sector highlights the need for reductions in beer duty, employment cost relief, and a review of packaging expenses. The BBPA argues these measures are achievable without direct cost to the Government and are crucial to preserving pubs as economic and social assets.
