The reeves’ tax increase causes the surge in the pub to be damaged

A series of tax increases introduced by the Chancellor Rachel Reeves in his autumn budget last year had contributed to the surge at the PUB that occurred in the UK in April, according to new figures.

As many as 67 pubs closed during the month – the highest number since July 2024 when 75 entered bankruptcy – the price Bailey accounting company said.

Ukhospitality said the increase in the contribution of the employer’s national insurance, plus a higher national minimum wage, increased the cost of full time work with at least £ 2,500 per person.

The two increases were announced by Reeves in their first budget last October and came into force in April.

The hotel sector, which employs 3.5 million people, has been devastated because it depends on a part -time wage and minimum wage worker.

“The initial signs were that taxes and the increase in the minimum wage that came into force in April had raised several pubs that struggled at the edge,” said the Head of Bankruptcy at a Bailey price, Matt Howard, said.

“Many pubs have run out of their financial buffer … One in five pubs technically bankrupt,” he added.

“It is clear that the signs of blinking economic warnings and the impact of the April cost increase is that it has a predicted impact,” said Kate Nicholls, the new chairman of the Hrospitality.

One of the five British PUB ‘technically bankrupt’

Price Bailey found that 21 percent of PUB technically bankrupt – meaning they have negative clean assets on their balance sheet, making them very vulnerable to bankruptcy.

“One in five pubs technically bankrupt, and while it is possible to continue to trade and save the situation, beaten with a sharp salary and an increase in energy prices will be proven too much for many of them,” Howard said.

This is mostly small independent pubs that have suffered greatly, with chain pubs and recreational areas of posting better trade in 2025.

Fuller, for example, said sales like-like-like in the pub rose 4.2 percent in the first 10 weeks of this year.

JD Wetherspoon, Marsston’s and Young also succeeded in fending off the cost crisis so far, relying on better trade and the improvement led by technology in the workforce.

However, for financial pubs that are not financially unsafe, the increase in costs has created a disaster loop where they have to limit opening hours to survive.

“Many have to sacrifice long -term customer relationships in the altar profitability because they focus on the busiest hours,” Howard said.

Reeves Tax Increase ‘cannot be maintained’

New numbers from the British Beer and Pub Association (BBPA) also show that the increase in taxes and the increase in the minimum wage has cost each British PUB around £ 14,000.

The impact of the increase in national insurance contributions, national minimum wages, business tariffs for several companies and packaging taxes have destroyed the equivalent of a 12 -day pub turnover, BBPA said.

Emma McClarin, the boss of the trading agency, said that the blow was “not maintained” and called for immediate action to help support the future of this sector.

This has urged the government to overhaul the current business tariff system of property taxes to help compensate for the increase in new costs.

The labor government has said it plans to reform the current business tariff system, and in March said it will issue a temporary report on this matter during the summer.

However, in the April Spring Statement, the government cut property taxes – who came to follow Pandemi Covid – from 75 percent to 40 percent, produced much higher bills for hospitality, retail and recreation businesses.

BPPA has asked the government to accelerate commercial property tax reforms to reduce pressure on the pub.

The organization warned earlier this year that the average price of one liter of beer would jumped over £ 5 for the first time due to an increase in costs regarding this sector.

It is said that the average cost of one liter in the UK is expected to increase by around 21P as a result because the pub is forced to provide inflation costs to customers.

MS McClarin, the Head of the BBPA Executive, said: “PUB effectively must run empty for almost two weeks which cannot be maintained given how important they are for the community, livelihoods, and the economy.

“We support workers’ ambitions to open the British potential but, to do that, they must make practical and meaningful changes that support pubs and work that depend on them.

“We are not asking for special treatment – we only ask for justice.

“We want a supporting business tariff system that supports, not punishing, pubs; the government to mitigate an increase in work costs, and an unreasonable and unfair EPR system review (responsible for producers).”