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Introduction: Number of pubs in England and Wales dipped below 39,000 this year
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The number of pubs in England and Wales has fallen again, as the trend of public houses disappearing from local communities accelerated in 2024.
Altus Group, the commercial real estate company, reports this morning that 412 pubs were demolished or converted for other uses over the last year. That pulls the number of pubs in operation across England and Wales down to 38,989, below 39,000 for the first time.
Pub owners have warned that rising costs, and changes to the alcohol excise duty system, have made it harder to keep operating, while the rising price of a pint has also led to pub closures.
The sector also fears a hangover from October’s budget in 2025. Altus Group’s Alex Probyn says:
“Many publicans that I speak to are extremely worried that this could be their last Christmas given the combination of hiking the amount employers will have to pay in National Insurance, increases to the minimum wage and the business rates discount being slashed from 75% to 40% in 2025.
The leisure industry was also badly hit by the Covid-19 pandemic, leading to a sharp drop in the number of nightclubs in operation – down from 1,700 in 2013 to just 787 by June this year.
The agenda
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3pm GMT: US pending home sales for November
-
3.30pm GMT: Dallas Fed Manufacturing Index
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Mexico left with 500m-litre tequila lake after demand slows
In other alcohol-related news, Mexico has a 500m-litre tequila lake as demand for the spirit has ebbed.
The Financial Times reports this morning that Mexico is sitting on more than half a billion litres of tequila in inventory, which is nearly a whole year’s production.
Data shows that around one-sixth of the 599mn litres of tequila produced last year is unsold, sitting alongside the 525mn litres that Mexico already had in inventory at the end of 2023.
This growing tequila lake is due to an ebbing of the pandemic spirits boom in the US, as consumers cut back on their drinking.
Bernstein analyst Trevor Stirling says:
“Much more new spirit is being distilled than is being sold, and inventories are starting to accumulate.
“The tequila industry is set for a very turbulent 2025.”
Some of the inventory is in the process of being aged – but distillers also run the risk that Donald Trump imposes new tariffs on Mexico, making it harder to sell tequila to the US market.
The drinks industry is urging the government to ease the load on publicans, following this latest drop in pub numbers.
Emma McClarkin, chief executive of the British Beer and Pub Association, says:
“Brewers and pubs pour billions into the economy and support more than a million jobs, so we know that closures can have a disastrous impact for both the nation’s coffers and the job market.
“For the sector to remain a stalwart of the economy and continue to be the beating heart of our communities, the Government must swiftly deliver permanent and meaningful business rate reforms.
“We stand ready to help the Government bring in sorely-needed change that will break down the barriers that stop our sector from contributing even more to the economy and employing more people than ever before.”
Introduction: Number of pubs in England and Wales dipped below 39,000 this year
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The number of pubs in England and Wales has fallen again, as the trend of public houses disappearing from local communities accelerated in 2024.
Altus Group, the commercial real estate company, reports this morning that 412 pubs were demolished or converted for other uses over the last year. That pulls the number of pubs in operation across England and Wales down to 38,989, below 39,000 for the first time.
Pub owners have warned that rising costs, and changes to the alcohol excise duty system, have made it harder to keep operating, while the rising price of a pint has also led to pub closures.
The sector also fears a hangover from October’s budget in 2025. Altus Group’s Alex Probyn says:
“Many publicans that I speak to are extremely worried that this could be their last Christmas given the combination of hiking the amount employers will have to pay in National Insurance, increases to the minimum wage and the business rates discount being slashed from 75% to 40% in 2025.
The leisure industry was also badly hit by the Covid-19 pandemic, leading to a sharp drop in the number of nightclubs in operation – down from 1,700 in 2013 to just 787 by June this year.
The agenda
-
3pm GMT: US pending home sales for November
-
3.30pm GMT: Dallas Fed Manufacturing Index
