More than 300 pubs may be forced to close in the North West next year without urgent Government action to cut staggering business rates

APPROXIMATELY 328 pubs; the equivalent of 1,335 jobs; could close in the North West next year unless the Government cuts 1 of the sector's biggest costs, the British Beer and Pub Association has warned.

The trade association said that the sector is heading into a:- "perfect storm" in 2026, driven by the planned withdrawal of business rates relief and the upcoming revaluation of business properties, both leading to even higher bills.

The new figures come from a report by The Centre of Economic and Business Research, commissioned by the BBPA, which found England could lose approximately:- 6 pubs a day.

The report finds that; if no further action taken by Government; business rates bills for pubs are expected to rise by over:- 50%, compounding already unsustainable cost pressures.

Last year, pubs and bars accounted for:- 0.4% of total UK turnover yet they paid:- 2.1% of the Business Rates bill.

If the sector were paying the average Business Rates to Turnover ratio, the bill would be £130 million instead of £637 million; meaning pubs across the country are overpaying by:- £507 million.

If the Chancellor does not use the Autumn Budget to reset and reform business rates, the BBPA said the UK could lose:- 2,000 pubs which would be:- "a wrecking ball" for the economy, livelihoods and communities who rely on them.

However, the BBPA says there is still time to act and is calling on the Chancellor to apply a reduction of:- 20p in the pound for pubs. If the Chancellor does this it could save almost:- 40% of at risk pubs; the equivalent of:- 5,400 jobs and generate nearly:- £100 million in Gross Value Added (GVA) to the UK economy.

This, along with a cut in beer duty, mitigating employment costs and reviewing punishing packaging costs, are vital for the sector to remain a pillar of the economy, job market, and stay at the heart of communities.

Emma McClarkin, Chief Executive of the British Beer and Pub Association, said:- "This scale of pub closures would be a wrecking ball for the economy, job market, and communities up and down the country. Government has a once in a generation opportunity to reset a deeply unfair rates system and unlock growth in every part of the country through backing our pubs by cutting this crushing cost. The Chancellor can choose to save jobs, boost the economy and protect our much loved pubs or oversee thousands of closures on her watch. Pubs are not just businesses; they are vital social and economic assets and to reset these rates would be a strategic investment in the UK. We urge Government to seize this moment and create the pathway to sustainable business growth"

The BBPA said that Government has the tools to implement the proposed reform and it would not cost them anything to bring in this reform.

The trade association said business rates reform, along with a cut in beer duty, mitigating employment costs, and a review of eye-watering packaging costs, would not only help the sector survive, but boost the economy and job market.

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