Ryan FowlerNew data from CGA by NIQ and AlixPartners shows that the UK hospitality sector saw a net decline of 374 venues in the first half of 2025, averaging two closures per day. The figures highlight ongoing challenges for pubs, cafés and restaurants already grappling with cost pressures and tightening margins.
George Holmes, managing director of business finance specialist Aurora Capital, said the closures reflect the impact of recent policy decisions on small operators. “This is yet more evidence of what happens when policy decisions are made without understanding the pressure small businesses are already under,” he said.
“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.”
Holmes cited changes to employer National Insurance as particularly 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.”
He criticised Government rhetoric around hospitality tax breaks. “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.”
