More than 6,000 pubs, restaurants and bars were forced to shut for good in 2023, new industry data from CGA revealed.
It indicates a slight improvement compared to 2022’s 8,798 closures, yet the cumulative impact over the years following the Covid-19 pandemic paints a grim picture of nearly 23,000 venues ceasing operations.
Industry experts have said the sector is facing "seismic" economic and operational pressures.
Kate Nichols, CEO of UK Hospitality, believes to deal with this the government should cap business rates at 3%, lower employer national insurance contributions and reduce VAT for the industry back down to 12.5%.
Under current plans, business rates will increase to 6.7% for around 20,000 venues.
Nichols added: “It’s clear that endless price rises and an ever-growing tax burden has left businesses on the cliff-edge, and has deterred investment.
“Venues have had no choice but to use their cash reserves to pay bills, keep the lights on and help people remain in jobs, instead of investing in and growing their businesses.”
Fewer businesses are opening their doors and higher borrowings have led to concerns about the future growth of the industry.
Earlier this month, Rekom UK, Britain’s largest nightclub operator, said it was close to appointing administrators as it struggled to reignite demand for clubbing post-pandemic.
The owners of brands like Atik and Pryzm said it was likely a host of site closures would occur as a result of it appointing administrators for several of its subsidiaries.
However, Nichols is confident change can be enacted for the sector if the chancellor brings through changes soon.
“With the right action from the government, this can be a short-term blip and the sector can fulfil its potential in driving economic growth, attracting investment and creating jobs,” she concluded.