Labour is set to announce support for the struggling pub industry in the UK, following reports of two pubs closing down every day. The government is preparing to introduce a set of measures, potentially as early as Tuesday, in response to increasing pressure to address an imminent tax hike.
Chancellor Rachel Reeves has acknowledged the challenges faced by pub owners and is prepared to take action, particularly concerning business rates. The specifics of the upcoming announcement remain uncertain, with questions raised about whether it will entail a temporary support plan or a permanent tax relief, a move long-awaited by the sector to avoid further closures.
Recent data disclosed that 188 pubs shut down in the last quarter of 2025, with the majority being community-oriented establishments dependent on beverage sales for sustenance. The report by NIQ and CGA intelligence revealed a decline of 56 food-led pubs, nine high street locations, and emphasized the urgency for intervention to halt the ongoing decline.
The Mirror has been actively advocating for the pub industry through its “Your Pub Needs You campaign,” advocating for aid to landlords and the communities they serve. While any additional assistance is welcomed, industry insiders believe that radical measures are essential to stem the closures, which have surpassed 2,000 since the beginning of 2020.
Pubs are grappling with a multitude of challenges, including shifts in consumer habits, wage increases, and escalating energy expenses. Of particular concern is the looming threat of a sharp rise in business rates due to the phasing out of Covid-related relief and impending revaluations in April.
Despite the Treasury’s £4.3 billion support initiative to mitigate pub bill increases, rumors of forthcoming aid for pubs have sparked calls for similar relief for businesses affected by rates. NIQ data highlighted a reduction of 382 hospitality establishments in the UK between September and December, underscoring the need for urgent action to prevent further closures.
Karl Chessell from NIQ cautioned about the toll of rising operational costs on the hospitality sector, especially during the critical trading period at the end of 2025. He expressed concerns about the challenging prospects for 2026, emphasizing the necessity for enhanced support and increased consumer spending to avert more closures in the future.
A spokesperson from the Treasury reiterated the government’s commitment to supporting pubs, citing the £4.3 billion relief package announced in the Budget as crucial to shielding most ratepayers from business rate hikes.