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Birmingham Post
Birmingham Post
Business
Tom Pegden

'Devastating' numbers of pub closures as costs spiral

The number of pubs in Britain has hit a record low following two years of on-and-off lockdowns followed by soaring inflation.

New research suggests the total number of pubs in England and Wales is down 7,000 on a decade ago at 40,000.

Industry groups have said the figures painted a devastating picture for villages and communities.

Research from real estate advisers Altus Group says many pubs have been turned into homes and shops due to the consequences of Covid – followed by spiralling inflation and unprecedented energy bills.

In the first six months of the year 200 pubs vanished, with the West Midlands seeing the biggest drop of 28 businesses, followed by London and the East of England which both lost 24.

The figures include any pub premises that pays business rates – including those vacant and being offered to let.

At the start of the year the managing director of Leicestershire’s Everards brewery and pub business said sales halved last year due to months of lockdowns.

Stephen Gould said sales plummeted as the 154 pub estate was forced to close, with the business suffering losses of £3.4 million in the year to September, down from £1.3 million a year before.

Turnover in the year to last September was £15 million, he said, down from £19.1 million a year before that and £30.6 million in 2019.

During the pandemic Everards cancelled £5.6 million of rent for its landlords – equal to 78 per cent of what it would have collected.

The British Beer and Pub Association, British Institute of Innkeeping and UKHospitality, said less than four in 10 hospitality businesses are turning a profit due to the rising cost of energy, goods and labour.

Former East Midlands MEP Emma McClarkin is chief executive of the British Beer and Pub Association and has called on the Government to provide more support.

She said: “When pubs are forced to close it’s a huge loss to the local community, and these numbers paint a devastating picture of how pubs are being lost in villages, towns and cities across the country.

“As a sector we have just weathered the hardest two years on memory, and we now face the challenge of extreme rising costs, with only one in three hospitality businesses currently profitable.

“It’s essential that we receive relief to ease these pressures or we really do risk losing more pubs year on year.”

Last month pub bosses warned of the impact of rail strikes adding to the existing problems.

The founder of City Pub Group in London, Clive Watson, said he might have lost as much as 25 per cent of usual June sales as industrial action led people to cancel outings.

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