As the cost-of-living crisis continues to squeeze British businesses, the country’s pub industry is facing a daunting challenge. According to recent analysis, one pub a day closed for good in England and Wales last year, with rising expenses such as energy bills, wages, repairs, and business rates taking a heavy toll.
JD Wetherspoon, a major pub chain, has warned of lower than expected half-year profits, citing a £45 million surge in costs. The company’s chairman, Tim Martin, revealed that “higher than expected” bills have meant profits are now likely to be lower compared to the same period in 2024.
The warning comes as pressure mounts on the British pub sector, with a number of rising costs in recent years, including higher employer national insurance contributions, increases in the minimum wage, and soaring energy prices and inflation. The government’s own statistics show that the overall number of pubs, including those vacant and being offered to let, fell to 38,623 in 2025, down from 39,989 a year earlier.
Chancellor Rachel Reeves is facing increasing pressure to mitigate the impact on the sector from an impending rise in business rates. Pubs are also bracing for an inflation-linked rise in alcohol duty from next month.
Speaking at the World Economic Forum in Davos, Reeves acknowledged the particular challenges facing pubs and said a support package was in the works, though she noted it would not cover the wider hospitality sector. “I do recognise the particular challenge that pubs face at the moment, and so have been working with the sector over the last few weeks to make sure that the right support is in place,” she said.
However, JD Wetherspoon’s Tim Martin said the government had not spoken to the company about the pressures facing the industry. He noted that energy costs in the UK are among the highest in the world, and labour costs are also very high, with these factors “creeping into all other supplier costs.”
The trade body UKHospitality, which represents pubs as well as hotels, restaurants, and indoor leisure venues, has warned Reeves that unless she U-turns on higher business rates, more hospitality workers will end up out of work. “It was less than a year ago when our local hospitality venues were landed with £3.4bn in additional annual costs, and now they face their business rates increasing, too,” said the group’s chief executive, Allen Simpson.
As the cost-of-living crisis continues to impact businesses across the country, the future of Britain’s beloved pubs hangs in the balance, with the government facing increasing pressure to provide meaningful support to the struggling industry.
