Pub numbers fall to record low amid Covid and rising costs

There are fewer pubs in England and Wales than ever, according to analysis that sheds light on the ruinous impact of the pandemic and soaring business costs.

The total number of pubs dropped below 40,000 during the first half of 2022, a fall of more than 7,000 since a decade ago.

Pubs that have disappeared from communities have been demolished or converted into other premises, such as homes and offices, the research from real estate advisers Altus Group says.

The hospitality sector has faced immense challenges in recent years as it recovered from the pandemic, with national lockdowns causing closures and reduced demand.

But the researchers suggest that while pubs managed to battle through Covid, they are facing a fresh challenge thanks to record-high inflation and an energy crisis.

“Whilst pubs proved remarkably resilient during the pandemic, they’re now facing new headwinds grappling with the cost of doing business crisis through soaring energy costs, inflationary pressures and tax rises,” said Robert Hayton, Altus Group’s UK president.

Two hundred pubs vanished from English and Welsh communities between the end of 2021 and the end of June. The biggest drop was in the West Midlands, losing 28, followed by London and the east of England, which both lost 24. Pubs included in the overall count are those that must pay business rates, including those vacant and being offered to let.

According to research from the British Beer and Pub Association, British Institute of Innkeeping and UKHospitality, only 37% of hospitality businesses are turning a profit.

The rising cost of energy, goods and labour were identified as the biggest factors behind falling profits.

Emma McClarkin, the chief executive of the British Beer and Pub Association, said: “It’s essential that we receive relief to ease these pressures or we really do risk losing more pubs year on year.”