The pub has forever been regarded as a home away from home, especially for sports fans, so it’s no surprise that people flocked to the pub to cheer on our fantastic Lionesses as they romped to victory over Spain in the Euro Finals. And my organisation, the BBPA (British Beer and Pub Association), estimates that one million extra pints were sold, giving a £5 million boost to the economy.
Whilst this is a fantastic shot in the arm for the hospitality sector, it is a sobering fact that England fans were paying over 10 times more in beer duty than their Spanish counterparts - approximately £500,000 in tax on the one million extra pints versus approximately £48,000 on the same quantity in Spain.
And walk through Soho, Hackney or Peckham and you’ll see the consequences of this and other punitive measures: another pub closed, another historic sign fading above shuttered doors.
It’s become so routine that we barely notice anymore - but we should because what’s happening to our pubs isn’t just a crisis for landlords and brewers, it is a crisis for our communities, our economy and the fabric of London life.
This year, the BBPA expects one pub will close every single day across the country. In the past 25 years, more than 15,800 have shut their doors - equal to one in every four of our pubs.
A shuttered pub means lost jobs, fractured communities and it symbolises a cultural heritage quietly fading from our landscapes.
In London, where space is tight and connections are fleeting, loneliness is on the rise. The local pub remains one of the last places where people of all ages and backgrounds can come together.
Our industry proudly contributes over £34 billion to the UK economy and supports more than a million jobs, from brewers and bar staff to cleaners, chefs, delivery drivers and tradespeople.
£1 in every £3 spent in the pub goes straight to the Treasury
Despite this, we are taxed like no other. Exactly £1 in every £3 spent in the pub goes straight to the Treasury, and 40% of brewers’ profits are swallowed up in taxes.
Now, we’re being hit with a triple whammy: soaring employment costs, punitive business rates, and the chaotic rollout of Extended Producer Responsibility (EPR) recycling packaging fees. Together, these new burdens are costing the sector an extra £833 million since they came into effect in April.
The vast majority of pubs can’t absorb these unforeseen additional costs and neither can their customers. The result? The average pint will rise by at least 21p, pushing it above the £5 mark across most of London.
This isn’t about poor management or lack of demand - pubs are still trading well - but most of the money they take goes straight back out in energy bills, business rates, wages and taxes.
The government must urgently reform business rates, delivering the full 20p per pound cut for smaller pubs. Anything less will lead to higher bills by 2026 when existing reliefs expire.
We want a cut in beer duty to bring it closer to European averages, supporting British manufacturing and keeping a lid on pint prices. We would also like the government to review the case for lower VAT rates for the hospitality sector, in line with Ireland and many other European countries. This would underpin sector growth and job creation, and provide fairness for products sold in pubs compared to supermarkets
The EPR scheme must be reviewed to ensure it's practical, fair and doesn't strangle growth in an already fragile industry. In order to give businesses time to plan and stay afloat, the government should also mitigate the employment cost cliff edge which came into force in April and appoint a dedicated Minister for Pubs to lead reform and ensure joined-up government action that protects this vital sector.
Pubs and brewers are playing their part; the rise of low and no-alcohol beers - now the fastest-growing category in the UK - is proof that our sector is evolving to meet public health goals and offer inclusive social spaces.
Over 120 million pints of low and no-alcohol beer were sold in 2023, with growth projected to continue. Aligning UK labelling rules with other countries (0.5% ABV, not 0.05%) would unlock innovation and help even more people moderate their drinking, while still enjoying pub life.
Let’s also talk about loneliness. A staggering two-thirds of UK adults say their local pub is vital in combating social isolation. At a time when we’re building 1.5 million new homes, what’s the point if we’re not also protecting the places where people can come together? Pubs should be central to building new neighbourhoods which are strong and connected. The truth is this: once a pub closes, it almost never reopens. The community it served rarely gets a replacement.
London’s pubs have survived war, recession and pandemic. What they might not survive is government indifference. The time for warm words is over. The government must act now to save the taps being turned off for good.
Emma McClarkin is CEO of the British Beer and Pub Association
