Last Orders - UK Losing Two Pubs or Restaurants Every Day

11th January 2026

It's official - Britain's hospitality sector is bleeding out. More than 3,000 pubs and restaurants have vanished in the past three years, with closures accelerating in 2025.

That’s two venues lost every single day and the culprits are hiding in plain sight VAT, business rates, energy bills, minimum wage and stealth taxes.

New employment rights will kick in soon adding more pressure on employers.

The Numbers Tell the Story
2023: 1,200 closures

2024: 1,000 closures

2025 (Jan-Aug): 730 closures

Total since 2023: Over 3,000 venues gone

The sector is now 14.2% smaller than it was in March 2020, and the damage is deepest among independent pubs and food-led venues — the lifeblood of local communities.

The Tax Tsunami
VAT at 20%: Adds £1 to every £5 pint, £3 to every £15 meal.

Business rates Revaluation adds £318 million in costs over three years.

National Insurance rise: Hits staffing budgets hard.

Energy bills: Still inflated, with no sector-specific relief.

For small landlords and restaurateurs, this isn’t just inflation — it’s death by a thousand levies.

Customers Vanishing Too
As prices rise, footfall falls. Regulars are cutting back. Young people are staying home. Families are skipping meals out. The pub once a sanctuary of social life is becoming a luxury.

What Needs to Change?
Cut VAT for hospitality — even 10-12% would help.

Reform business rates to reflect margins, not square footage.

Support staffing costs with targeted NI relief.

Recognize pubs as community assets, not just commercial units.

Voices from the Ground
Landlords call it "unsustainable." Chefs say they’re "hanging on by a thread." And regulars? They’re watching their local vanish not because of poor service, but because of policy neglect.