2,000 pubs at risk of closure without business rates overhaul, BBPA warns

The British Beer and Pub Association (BBPA) has warned that up to 2,300 venues could be forced to close unless the government overhauls business rates.

A report published by the BBPA earlier in May found that approximately two pubs a day closed for the first three months of the year, due to pub-specific business rates. The BBPA’s analysis revealed that the government responded with a support package providing the industry with £73.6 million in savings for 2026-27, whilst also introducing a two-year freeze on business rates for pubs starting in 2027-28.

However, unlike other business models, pub rates are assessed using their takings as opposed to their rent. Emma McClarkin, chief executive of the BBPA, told The Telegraph in a statement that without the right changes, thousands more could follow in a “devastating blow to communities, jobs and local economies.”

She continued: “While these measures have reduced the immediate burden, they do not solve the long-term problem, which traps pubs in a cycle of uncertainty and shocking increases.

“Our analysis shows that if the underlying methodology is left unchanged, we could see around 2,300 pubs close in 2029-30. We cannot emphasise enough what a devastating blow to communities, jobs and local economies across the country [that would be]. Getting the methodology right is not simply an administrative exercise. It will have real-world consequences for thousands of pubs, workers, and the communities they serve.”