The Department for Business and Trade (DBT) has issued an important update following numerous complaints about pub closures throughout the UK. This response comes after a petition, which gathered over 12,000 signatures, called for increased support for the hospitality sector.
The British Beer and Pub Association reported that approximately 300 pubs shut down in England and Wales last year, with an average of six closures per week. The escalating costs have led to over 4,000 job losses in the industry.
In light of these challenges, a parliamentary campaign urged the Government to explore ways to assist the hospitality industry and prevent further closures. The DBT recognized the significance of pubs in boosting local economies and fostering community connections, reaffirming its commitment to bolstering this sector despite broader economic difficulties.
In an online update released on October 16, the DBT emphasized its support for the hospitality sector through targeted actions, reducing bureaucracy, eliminating obstacles, and creating favorable conditions for business growth. The Government announced plans to reform business rates and introduce lower tax rates for retail, hospitality, and leisure properties with values below £500,000 starting in 2026-27.
Furthermore, alcohol duty reductions on certain draught products are expected to result in an annual decrease of over £85 million in duty bills. Efforts are underway to assess the beer market to identify any hindrances preventing small brewers from accessing pubs.
Although the Government made tough decisions, including adjustments to National Insurance contributions, it aimed to protect smaller hospitality businesses. The petition calling for support to prevent pub closures garnered 12,488 signatures but did not reach the threshold for a parliamentary debate.
For full details of the petition, you can access it here.