Pub and bar closures nearly double in past year

The UK’s pub and bar industry saw a near record-breaking amount of bankruptcies last year with more than 500 businesses collapsing.

Around 512 licensed venues went out of business, reflecting a jump of 83% on the previous year, according to the latest Insolvency Service research by accountancy firm UHY Hacker Young.

Insolvencies of pub and bar companies increased from 280 in 2021 to 512 in 2022, as rail strikes, and the cost-of-living crisis hit consumer footfall. This latest figure was close to the peak of 551 recorded in 2013.

Pub and bar companies have faced increasing costs and concerns over falling sales. Energy prices have soared and hit pub companies’ wallets hard throughout the winter after the government removed support for businesses’ energy bills.

At the same time, inflation has pushed up the prices that pubs need to pay for beer and food.

Peter Kubik, head of turnaround and recovery at UHY Hacker Young, said: “It’s deeply concerning that so many pubs and bars are closing their doors. In addition to the financial consequences for owners and employees, the loss of a pub can be felt quite keenly by the community.”

“Perhaps the government should consider what it can do to alleviate pressures, for instance, by extending the energy bill relief scheme for the hospitality sector.”

The industry is bracing itself for potentially more closures when the Government’s £18bn energy support package comes to an end, from the end of March.