Rachel Reeves' budget is stoking fears of landlords (Image: Getty)
The number of pubs in England and Wales have fallen below 39,000 for the first time - and industry watchers are worried that the Labour budget could spell the end for even more.
Hundreds of landlords called time on their business during 2024 and from April next year a number of policies from Rachel Reeves' autumn Budget will come into force which could put the nail in the coffin for even more publicans.
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Altus Group’s Alex Probyn said: “Many publicans that I speak to are extremely worried that this could be their last Christmas given the combination of hiking the amount employers will have to pay in National Insurance, increases to the minimum wage and the business rates discount being slashed from 75% to 40% in 2025.
“Many pubs simply will no longer be viable making plots even more attractive for alternative investment.”
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Pubs are closing down at amn increased rate (Image: Getty)
Government statistics revealed that 412 pubs were demolished or converted for other uses over the year to December, according to property group Altus.
This compared to just under 390 pub losses in the past two years, and is the highest number lost since the Covid-hit years of 2020 and 2021.
Altus said the overall number of pubs in England and Wales, including those vacant and being offered to let, fell to 38,989.
Closures totalled an average of 34 pubs a month the sharpest fall since pandemic restrictions and an energy price hike led to a surge in 2021.
Altus said UK pub numbers had fallen 2,000 since the start of 2020 and next year could be even worse for the sector industry leaders have warned. This year's closures have been blamed on rising costs and cautious spending among consumers whose mortgages and rents have gone up.
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Emma McClarkin, chief executive of the British Beer and Pub Association, said: “Brewers and pubs pour billions into the economy and support more than a million jobs, so we know that closures can have a disastrous impact for both the nation’s coffers and the job market.
“For the sector to remain a stalwart of the economy and continue to be the beating heart of our communities, the Government must swiftly deliver permanent and meaningful business rate reforms.
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“We stand ready to help the Government bring in sorely-needed change that will break down the barriers that stop our sector from contributing even more to the economy and employing more people than ever before.”
Altus' data also showed that London lost the greatest number of pubs in 2024, falling by 55 to 3,470 at the end of the year.
Meanwhile, pub numbers dropped by 53 to 3,904 in the West Midlands.