More than 150 pubs permanently close in England and Wales in first three months of year

More than 150 pubs have permanently closed in England and Wales during the first three months of 2023.

The rate of pubs being demolished or redeveloped for other purposes has increased by almost 60% at the start of the year, as huge increases in energy bills hit the sector hard.

Analysis of official government data by real estate intelligence firm Altus Group showed that 51 pubs were lost each month between January to 31 March – a total of 153 pubs – in comparison to a loss of around 32 pubs a month – 386 in total – during the whole of 2022.

It comes as energy and food costs are on the rise while consumer demand has weakened, piling the pressure on landlords.

The British Beer and Pub Association warned that the average energy bill for a pub would rise by £18,400 a year from April, when the Energy Bill Relief Scheme ended on 31 March.

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This helped businesses and public sector organisations like schools and hospitals by providing support due to rising wholesale gas and electricity prices.

The end of energy support is also set to wipe out the benefit seen from reductions on property taxes, Alex Probyn, president of Altus Group said.

“Pubs have seen their values for the business rates tax fall 17% overall and, with measures taken at last year’s Autumn Statement, that will mean a tax saving of £5,500 for the average pub,” he said.

“But that simply won’t compensate for the energy support being lost, making plots even more attractive for alternative investment.”

Once demolished or converted into homes, offices or other types of businesses, a pub is no longer recorded on government data.

At the end of 2022, there were 39,787 active pubs recorded in England and Wales.