Pub closures reached their highest level on record in the second quarter of 2023, beating the previous record in the first three months of the year, research from Price Bailey revealed.
Following the closures of 200 pubs in the first three months of the year, nearly 225 sites shut in the second quarter, amounting to a total of 729 businesses in the last year, around an 80% increase from 2021/22.
Soaring energy bills, stubborn inflation, rising wages and weakened demand appeared to be the biggest issues for the sector when the year started, but changes to licensing and alcohol duty tax as well as a lack of support from the government have all hampered chances of a recovery, especially for independents.
“Pub closures are rising at a rate unheard of in more than a decade. We are seeing a perfect storm of high inflation and interest rates at a time when many pubs are on life support,” said Matt Howard, head of insolvency and recovery at Price Bailey.
In the first six months of the year hospitality closures, considered to be around 1,900, accounted for 10% of all company administrations in the UK, a separate piece of research by Shakespeare Martineau found.
Andy Taylor, partner at the law firm, said: “We're seeing a steady flow of corporate failures. Should some other ‘bad news' rear its head, then that is only likely to increase. Businesses and individuals need to see interest rates and inflation come down. With a period of stability, we will see confidence increase.”