More than 400 pubs in England and Wales have closed or been repurposed in the past year, bringing the total number below 39,000 for the first time.
Commercial real estate company Altus Group says 412 cafes will have been demolished or converted to alternative uses by 2024, leaving just 38,989 in use.
The UK brewing and hospitality sectors have long warned of rising costs, including changes to the alcohol duty system and higher energy bills. Businesses also face further challenges in 2025, when national insurance contributions will rise, the national living wage will increase and the business rates discount will be reduced from 75% to 40%.
Alex Probyn, UK property tax chairman at Altus Group, said: “Many publicans I speak to are extremely concerned that this could be their last Christmas. Costs for employers are rising just as rate cuts are being rolled back, making it increasingly difficult to maintain profitability.”
The leisure industry took a major hit during the Covid-19 pandemic, culminating in a rapid decline in the number of nightclubs, which fell from 1,700 a decade ago to just 787 in June 2024.