UK pubs face record closures in 2025 as costs and taxes bite
The UK's hospitality sector is facing a challenging year, with a record number of pub closures in 2025. Simon Emeny, CEO of Amey and executive chair of Fuller's, has criticized the lack of a clear plan from the Chancellor to support the industry. Meanwhile, Fuller's has reported a mixed bag of results.
The first 10 months of 2025 saw a 5% increase in pub and bar businesses going insolvent compared to the same period in 2024, with 449 closures. Kate Nicholls, chair of UK Hospitality, attributed this to heavy Covid debts and business rate hikes. Wetherspoon has also warned of a cautious outlook due to increased labor costs and further tax hikes.
Despite these challenges, Fuller's has seen a 16% increase in Christmas party bookings compared to 2024. The company's interim dividend was also increased by 6% to 7.85p, and its shares rose 0.5% to 106p in early trade on Wednesday. Fuller's reported a 6.9% rise in sales for the first half of 2025 to £208m. However, the company took an £8m hit from last Budget's tax hikes to National Insurance Contributions.
The UK's pub industry is grappling with rising costs and closures, with no clear plan from the Chancellor to ease the burden. While Fuller's has shown resilience with increased bookings and sales, the sector as a whole faces significant challenges in the coming year.
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