Over 1,100 UK Pubs, Restaurants Shut Since October Tax Rises

Since Chancellor Rachel Reeves implemented tax increases in October 2024, over 1,100 pubs and restaurants in Britain have closed, averaging two closures per day, as the hospitality sector faces its most severe crisis in decades. Rising costs from increased employer National Insurance contributions and a 6.7% minimum wage hike have added nearly £2.9 billion to employers' bills, disproportionately impacting independent venues and smaller businesses. Hospitality leaders, including Kate Nicholls of UKHospitality, warn that these tax burdens, alongside business rates and energy prices, are driving widespread redundancies and threatening the survival of the sector. The industry, which has lost more than 16,000 venues since the pandemic, fears further damage from upcoming business rate changes. Operators like James Nye of the White Horse pub report struggling even during peak seasons due to inflation and staffing challenges. Experts urge the government to reduce business rates, reform National Insurance thresholds, and cut VAT on food and drink to stimulate investment and preserve the nightlife economy.