Labour is set to reveal support for the struggling pub industry in the UK, as statistics show that two pubs are shutting down every day. The government is anticipated to introduce a package of measures soon to address the growing concerns about an impending tax increase.
Chancellor Rachel Reeves has acknowledged the challenges faced by pub owners and is prepared to take action, particularly regarding business rates. However, it remains uncertain whether the upcoming announcement will include temporary assistance rather than permanent tax relief, which the industry is urgently seeking to prevent further closures.
Recent data disclosed that 188 pubs closed their doors in the last quarter of 2025, with the majority being community pubs that heavily rely on alcohol sales. The report from NIQ and CGA intelligence also revealed a decrease in food-led pubs and high street establishments during the same period.
The Mirror has been actively supporting the pub industry through its Your Pub Needs You campaign, advocating for aid to landlords and the communities they serve. Despite the potential forthcoming assistance, many within the pub sector believe substantial measures are necessary to combat the closure trend, which has resulted in over 2,000 pubs shutting down since the beginning of 2020.
Pubs are facing multiple challenges, including shifting consumer preferences, rising wages, and escalating energy expenses. However, the most immediate threat is the proposed surge in business rates due to the reduction of Covid-era relief and upcoming revaluations in April.
While the Treasury asserts that it is offering a £4.3 billion support package to limit pub owners’ bill increases, the rumored aid for pubs has prompted calls for similar support for other businesses impacted by rates.
According to NIQ data, the UK witnessed a decline of 382 hospitality sites between September and December, totaling 98,914 establishments. More than 240 restaurants closed during the same period, despite it typically being a busy time for the industry.
There are concerns that the rate of closures may accelerate in the new year as financially constrained consumers reduce their spending. NIQ also reported closures of nightclubs, sports clubs, and social clubs over the past year.
Karl Chessell from NIQ expressed worry over the escalating closures in the final quarter of 2025, attributing it to the continual rise in operating expenses within the hospitality sector. He mentioned that without additional support and increased consumer spending, hundreds more closures are expected in the coming months.
A Treasury spokesperson emphasized the government’s commitment to supporting pubs, highlighting the £4.3 billion aid package announced during the Budget to shield most ratepayers from business rates hikes.