Insolvencies rose from 280 in 2020/21, to 512 as of 31 December 2022.
Food and drink cost inflation and rising energy prices, combined with reduced footfall due to rail strikes and the cost of living crisis, have impacted sales and increased insolvencies.
“It’s deeply concerning that so many pubs and bars are closing their doors,” says Peter Kubik, partner at UHY Hacker Young.
In addition to the financial consequences for owners and employees, the loss of a pub can be felt quite keenly by the community.”
Following the pandemic, many pub and bar businesses have little savings or capacity to borrow more, while consumers have cut down on discretionary spend, according to UHY Hacker Young.
“This is a particularly difficult period for pub and bar owners, who find they need to spend more and more while earning less and less,” continues Kubik.
“Following an extended period of lost revenues during the pandemic, the cost-of-living crisis has been the final nail in the coffin for many.
“Perhaps the Government should consider what it can do to alleviate pressures, for instance, by extending the energy bill relief scheme for the hospitality sector.”
