UK business rates could shut 540 bars this year
Trade organisation UKHospitality has estimated that around 540 on-trade venues could close in 2026 if the business rates system isn’t resolved.
The estimation is based on the number of licensed premises in Great Britain according to NIQ’s Hospitality Market Monitor. The data factors in the current closure rate, average increases to rateable values for those categories and survey data of UKHospitality members regarding the rate of business failure.
The figure for wet-led venues equals one closure every day.
The on-trade sector fares slightly better than restaurants, which are set to lose 963 sites in 2026, and hotels, which could lose 574.
UKHospitality believes many of these closures will be a result of the government’s new business rates system, which is set to be introduced in April. However, there are already rumours of a U-turn specifically for pubs.
The organisation previously estimated that the average pub will see its rates increase by 15% in 2026/27 – an extra £1,400 (US$1,887) – and by 76% over the next three years.
Following the publication of the data, UKHospitality is calling on the government to increase the business rates discount for hospitality from 5p to 20p.
Chair Kate Nicholls said: “Staggering increases to business rates will affect the entire hospitality sector and, without a hospitality-wide solution, we will see significant business closures.
“Thousands of venues, particularly neighbourhood restaurants and local hotels, will be forced to close for good as a result of the significant rate rises they’re facing.
“This is yet another blow to a hospitality sector that bears the highest tax burden in the economy, and has already been disproportionately burdened by increases to NICs, wages, energy and other inputs.
“Hospitality is one of the nation’s biggest employers and has an incredible potential to grow and create jobs, but the money coming in the front door is simply not enough to offset the rocketing costs of doing business. All of this undermines the government’s objectives to grow the economy and help more people back into work.
“We need a hospitality-wide solution that averts damaging business rates hikes in April. The government needs to implement the maximum possible 20p discount to the multiplier for all hospitality properties.”
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