Last orders: can pubs in the UK be saved?

Britain's pubs are closing at a rate of one every day, which is both accelerating and maintaining a long-term downward trend

Why? Is there anything that can be done to help them?

What has happened to pubs in the UK?

Government statistics show that for the first time, more than one pub per day is calling last orders and permanently closing. In England and Wales, about 209 pubs called time forever in the first half of 2025, which is eight times a week, up from six the previous year. Since the beginning of 2020, 2,283 pubs have completely disappeared from communities all over Britain, either being demolished or being used for other purposes. The UK's largest pub association, the British Beer and Pub Association (BBPA), estimates that 378 closures will occur this year in England, Scotland, and Wales, resulting in the loss of 5,600 jobs. This is an increase over the 350 closures that occurred last year and continues a downward trend that has seen 15,000 pubs (one in four) permanently close since the turn of the century.

Why are pubs closing so frequently in the UK?

The trend has been downward for well over a century, but it was made worse by COVID lockdowns and their debt legacy. One pub for every 130 people was one of the 115,000 pubs and "beerhouses" in the United Kingdom in 1870, according to Andrew Ellson in The Times. Approximately 45,000 exist today for every 1,000 adults. Due to stricter licensing regulations and the temperance movement, the number of pubs began to decline in the late 19th century. Later, the Defence of the Realm Act limited opening hours, and World War I reduced the number of men. Only 75,000 remained by the 1960s, as many gave way to urban redevelopment, changing social mores, and less expensive "off-licence" alcohol. Although the long-term decline peaked in the 2010s, the numbers have since started to decline steadily once more.

In the UK, why are pubs closing so quickly?

Reduced demand, increased expenses, and more onerous rules. Young people are drinking less when they do go out and going out less overall. Pubs have not been abandoned by younger adults; industry data shows that 86% of Gen-Z adults (those in their late 20s) have been to a pub within the last three months. All generations have grown more health conscious, but they are drinking less than their predecessors. The industry has faced "numerous and substantial" challenges in recent years, according to Lex in the Financial Times. These include increased costs for energy and wages due to higher national insurance and minimum wages, competition from supermarkets, and substantial debt piles from COVID.

Are pubs in the UK closing due to business rates?

Many in the pub industry were incensed when Rachel Reeves reduced the 60 percent discount that hospitality businesses had previously received on their business rates, up to a cap of 110,000, to 25 percent in April. The increased expenses, according to Alex Probyn of Ryan, a commercial real estate specialist, are "all quietly draining profits until staying open becomes impossible." He estimates that adjustments to the pub relief have resulted in an additional 215 million bill for them. "That represents a 140 percent increase in the average bill for a small pub, going from 3,938 to 9,451.

Is there anything that can prevent pubs in the UK from closing?

Pubs continue to draw crowds, particularly when the sun is shining; the three largest pub chains all saw increases in sales during Britain's warm spring and summer. More than 800 pubs are owned by JD Wetherspoon, which reported in July that turnover had increased by 5% over the preceding three months. Sales at Youngs increased by 7%. There was a 5% increase for Mitchells and Butlers. For long-suffering investors, however, a familiar tale has faded due to a surge in share prices earlier this year. S&P Capital IQs data shows that, on average, pub-group valuations on an enterprise value/Ebitda basis decreased between 16 and 28 percent in the ten years leading up to 2024. The prices of shares in JD Wetherspoon, Marstons, Young and Cos Brewery, Fuller Smith & Turner, and Mitchells & Butlers have all dropped over the past ten years.

The pub in Surrey called White Horse Inn.

What do pubs in the UK want?

The government declared a fast-track review of what it calls "outdated" licensing regulations last week. Pubs and bars in England and Wales may be permitted to remain open later as a result of this. More live music performances and outdoor food service may be made easier for venues by the plans. In The Telegraph, William Sitwell states, "But it simply isn't enough to turn the tide, and landlords up and down the country know it." What is actually required is a targeted plan to turn around the hospitality industry, a reversal of the increase in employers' national insurance, and tax breaks specifically targeted at the industry (such as lower VAT rates and higher business rates relief). Otherwise, closing numbers will only rise.

What changes are we seeing in UK pubs?

According to The Economist, hipster microbreweries selling local cask ales, sports bars, gastropubs, and country pubs "each have their own take on what it is to be a pub from dingy bars to overpriced restaurants." Food is a recurring theme: even at JD Wetherspoon, which is well-known for its inexpensive alcohol, sales of bars have decreased from 76% to 57% of total revenue since 2008; food has increased from 18% to 38%. Entertainment and diversification are two more themes. With dartboards and pool tables, pubs used to entice patrons to stay; these days, they host karaoke and theme nights. The emergence of "competitive socialising" venues is a lesson that pubs should learn to keep Gen Z coming.

What else could prevent pubs in the UK from closing?

Some are starting to resemble cafes in that they provide a greater selection of drinks, upscale coffees, and all-day menus. A new type of "regular" is being fostered by others, who are using loyalty programs and Halloween-themed events. Longtime patrons might "sob into their pewter pint mugs to see their local pub offering kids pumpkin carving come late October," according to Lex. However, pubs will continue to change as they have in the past. In 1946, George Orwell talked about his Moon Under Water pub and bemoaned the loss of strawberry-pink mugs, saying that "beer tasted better served in china mugs." Maybe they could be brought back to life in a hipster pub.