Rising prices, closing early and no Christmas parties: Festive season ‘perfect storm’ leaves pubs on the brink

Pubs across the UK describe tough Christmas trading conditions after some were left without any festive party bookings for the first time – as they fear they won’t even be able to keep their doors open until the new year

Trade bodies say one pub will shut every single day in 2025 (Getty)

When Jo Loring started running the Cosy Dove pub in Newcastle 11 years ago, he would have to usher his customers out of the doors at 11pm so he could close up over Christmas.

Now, after a year of relentless financial challenges, he says he’ll probably be closing early this year, with fewer punters there to hear the bell ringing out for last orders.

“We’ll be closing early because there’s virtually no one around,” he told The Independent, adding he thinks he’ll be around 20 per cent down on sales from last year.

“It’s what you’d call a perfect storm,” he said. “It’s a very different landscape, and it’s ever-changing – all the pubs around me are saying a similar thing.”

Mr Loring is one of countless pub owners across the UK fearing one of the most challenging festive seasons the industry has ever seen.

Max and Jo Loring, who run the Cosy Dove in Newcastle (Supplied)

Dawn Hopkins, 56, who runs the Rose Inn in Norwich, described having a “tsunami of cost rises”, which have hit independent businesses hard.

Like many other pubs, she will be serving more expensive pints this Christmas, with most looking at rises from 30p to 50p a pint.

Ms Hopkins, who is also the vice-chair of Campaign For Pubs, said: “I’m hearing from people who say they are really quiet and they are a bit worried. Some hope they’re going to get to Christmas Day but don’t know if they will.”

Figures from trade bodies said one pub would be closing its doors every single day in 2025, with more than 400 having closed their doors in 2024. The closures come amid a continued struggle from the pandemic, alongside what many pub owners believe to be hostile financial measures brought in by successive governments.

Alastair Scoular took over his family pub The Steam Packet Inn in 1995, but says he has never experienced the industry in rural Scotland as “tough as it is” right now.

Dawn Dawn Hopkins, 56, who runs the Rose Inn in Norwich, described having a ‘tsunami of cost rises’ (Supplied)

“Usually Christmas in Scotland tends to be a lot busier around the new year and we’d get quite a few parties in the run-up – but we’ve certainly not had the same number of bookings,” he said.

“We’re going to take what we can but it won’t be a golden time that will help us get through the winter. I used to bank on a certain amount of income to get through January and February but I’m not this year.”

Tom McNeeney has run The Oxford in Rochdale for 13 years, but says the last 12 months have been “disheartening”.

He says his pub, which employs 21 people and serves around 1,800 customers a week, is seeing a return of footfall from Covid – yet is still struggling with profitability.

“The pubs that are still open are busier than ever – but profitability is lower than it’s ever been,” he said.

Alastair Scoular (pictured) took over his family pub The Steam Packet Inn in 1995, but says he has never experienced the industry in rural Scotland as ‘tough as it is’ right now (Supplied)

“What we’re seeing is almost impossible to comprehend because pubs that are busier than they’ve been in six years are closing up shop because profitability is at an all-time low.”

He added: “In December, we are going to be busy and seen on the face of it as thriving but that’s part of the problem. It’s easy to look at a busy business and assume it’s doing well but the reality underneath is that there’s a real problem with keeping open.”

Mr McNeeney also explained that young people, who are likely to go out and be sociable at Christmas, have been particularly impacted by the loss of approximately 89,000 jobs in the sector.

He said reforms to business rates, as well as higher rates of pay in 16- 21-year-olds, mean the sector will see this “epidemic of unemployment reach new highs”.

“Most people in that under-25s bracket are the people who go out and discover places in the local area but if they don’t have part-time jobs or disposable income, they’re not investing in the local businesses and communities around them,” he said.

Tom McNeeney has run The Oxford in Rochdale for 13 years but says the last 12 months have been ‘disheartening’ (Getty)

He also said that December, once a time to look forward to profit, is now “a downpayment for January”, where he will have to reduce opening hours and close for a week.

Wesley Birch, 40, who runs a catering company and two pubs in Stroud, told The Independent he and his wife have had to waive their salary for the first time since they began running Birch Catering 15 years ago (Supplied)

Wesley Birch, 40, who runs a catering company and two pubs in Stroud, told The Independent he and his wife have had to waive their salary for the first time since they began running Birch Catering 15 years ago.

Mr Birch, who runs the Ship Inn and The Old Neighbourhood Inn, said that though there has never been a lot of profit in hospitality, this year had seen them “work for nothing”.

“We’re really well supported by the community – but the problem is there’s no profit margins,” he said, adding there are concerns people will “tighten their belts” once more after tax rises in this year’s Budget.

He said: “Having as much turnover this Christmas is vital, whereas in previous years I didn’t even think about it. I used to have enough profit in the business to give people time off but this year it’s not possible at all.”

Chris Welch, 39, who runs the Fishnet Tavern in North Tyneside, said his pub almost had to close last January, and fears being in a worse position after Christmas.

“I’m terrified this year. I feel like I’m personally trying to do a good deed by employing five staff and creating local employment, but I’m dreading it. Every month feels like an uphill battle. I don’t even take a wage,” he said.

Sir Keir Starmer has called “pubs and bars are the beating heart of our communities”, and said that the government was “backing them to thrive”.

Chris Welch, 39, who runs the Fishnet Tavern in North Tyneside, said his pub almost had to close last January, and fears being in a worse position after Christmas (Getty/iStock)

But after hearing Labour’s 2025 Budget, Mr Welch said his business rates evaluation is set to increase by an extra £4,00 each year, calling the announcement a “disgrace”.

“It’s dark times for pubs and I doubt we will survive past August next year,” he said.

In Crewe, Jacqui Ayling and her husband Sean think this could be their last Christmas running Tom’s Tap and Brewhouse.

The pair have already had to close on Mondays and Tuesdays and are planning on closing on Wednesdays and Sundays through the colder months.

“We cannot afford the overheads incurred by opening the pub for a session in the cold months when our customers are less likely to come out on those days,” she said.

Fiona Hornsby, 45, runs three pubs in Liverpool, but similarly said trying to get people into venues for Christmas dos is getting increasingly harder (Getty/iStock)

This Christmas, they’ve had to think much more about getting people through the door – having noticed a sharp drop in Christmas parties being booked.

“We were maybe doing one or two a week, eight or so in December – but not one this year,” she said. “Companies are cutting down as well, so they can’t afford staff parties anymore. It’s had a knock-on effect.”

Fiona Hornsby, 45, runs three pubs in Liverpool, but similarly said trying to get people into venues for Christmas dos is getting increasingly harder.

“We are decorating the exterior this year too, so we stick out a bit more so people can see you,” she said. “You’ve got to be everywhere now, it’s getting harder.”

Gary Timmins, CAMRA pub and club campaigns director, said extra footfall over the festive period is “vital” and helps to see them through the quieter months at the start of the year.

But he said: “Government also needs to play their part to reduce costs and give our locals a fighting chance by making the business rates, VAT and beer duty systems fairer. Otherwise, we risk losing more pubs for good.”

Business minister Kate Dearden said: “Pubs are essential parts of our communities and vital to our economy. Running them takes hard work and dedication. We know that pubs need our support to deliver, and we’ve begun that work by capping business rates for most properties at 15 per cent, when they were facing a 45 per cent hike.

“We’re slashing red tape so that more pubs can offer al fresco dining, and more funding to support rural pubs. At the Budget, we made the decision to ask online giants and the wealthiest properties to pay more, so local pubs and communities get the backing they deserve.”