More than 500 pubs may close in 2026, MPs say

The Commons backed an inflation-linked rise in alcohol duty that takes effect on 1 February, and modelling from UKHospitality suggests about 540 pubs could close in 2026.

Parliament recently approved an alcohol duty rise linked to inflation, which the government says will take effect on 1 February. Industry groups and MPs have raised concerns about the cumulative impact of recent cost increases on pubs. New modelling and government data have been cited as indicating continued closures in the sector. Political figures across parties have called for measures to address pressures on pubs. Key facts: - The Commons backed an inflation-linked increase in alcohol duty, which is due to start on 1 February after passage of the Finance Bill. - Modelling by UKHospitality indicates about 540 pub closures could occur in 2026. - Analysis by tax specialists at Ryan reported that one pub a day closed permanently in England and Wales in 2025. - MPs and local figures said pubs face a combination of rising costs and policy changes, including higher taxes, wage and energy pressures, and business rates. Summary: The reported modelling and recent government data point to continued closures across the pub sector and have prompted concern among MPs and local leaders. The alcohol duty increase will take effect on 1 February, and the shadow chancellor is reported to be working on a package related to business rates for pubs. Further developments and any detailed government measures are undetermined at this time.