New figures from CGA by NIQ and AlixPartners show the UK hospitality sector lost 374 venues in the first half of 2025, with net closures averaging two a day. The data highlights ongoing pressures on pubs, restaurants and cafés, particularly independent operators working to tight margins.
George Holmes, Managing Director of business finance specialist, Aurora Capital, said: “This is yet more evidence of what happens when policy decisions are made without understanding the pressure small businesses are already under.
“Pubs, restaurants and cafés operate on some of the tightest margins in the economy. Adding billions in new wage costs overnight, without meaningful business rates reform or sector-specific relief, has pushed hundreds of viable firms over the edge.
“The rise in employer National Insurance is especially damaging. Small operators are now paying tax on the wages of part-time staff who were previously exempt. For many independents, this is the tipping point between survival and shutdown.
“The Treasury talks up things like pavement pints and draught duty cuts, but none of that helps in reality. The tax burden on hospitality has never been higher, and if urgent action isn’t taken soon, the UK risks hollowing out its high streets for good.”
