London (Parliament Politics Magazine) – London saw a net loss of 40 pubs last year despite record-high employment in the sector. The closure trend reflects challenges from rising costs and previous government policies.
London mourned a net loss of about 40 pubs and bars last year, while at the same time operating a record-high number of staff in the sector, new data shows. The 0.7 per cent drop in the number of pubs in the capital, despite a 4.3 per cent climb in employees, is defined by the demise of smaller pubs and the promotion of larger ones.
What Criticisms Did City Hall Conservatives Make?
City Hall Conservatives stated the overall drop in pub numbers confirmed that there had not been “any improvement” from Sadiq Khan or his Night Czar Amy Lamé in improving London’s night-time economy, but the mayor’s team claimed that pubs have encountered “huge challenges” due to “the inflated costs of living and doing business under the previous Government”.
How Have Larger Pubs Affected the London Bar Scene?
According to ONS data studied by economists at City Hall, London moved from 3,575 pubs in March 2022, to 3,535 a year later. Back in 2001, the stats stood at 4,835. However, London also increased its number of pub employees from an average of about 47,000 in 2022 to 49,000 last year – the highest since records started in 2001 when there were 42,000 people in the sector.
What Factors Contributed to the Decline in Smaller Pubs?
This is due to the continual development of larger pubs, described as those with 10 or more staff members. They accounted for less than a third of all London bars in 2001, but that share had risen to just over half last year.
What Actions Are Needed to Support London’s Pubs?
Kate Nicholls, chief executive of trade body UKHospitality, stated: “It’s disappointing and frustrating that we’re persisting to see pub closures across the country. This level of closures is the impact of sky-high costs that are putting business proprietors under considerable pressure. It’s vital that we see critical action to bring these operating costs down to a more effortless level, in order to support our historic pub industry not just survive, but thrive.
“It is particularly important that the new Government delivers on its manifesto commitment to fix the broken business rates system, which will help not just pubs, but the wider hospitality industry, bounce back.” The conscious net London-wide reduction of 40 pubs is the largest since Mr Khan’s first year of office when there was a year-on-year fall of 85 bars in the capital between 2016 and 2017.
How Have Recent Policies Affected the Night-Time Economy?
Emma Best, deputy leader of City Hall Conservatives, stated that “given the significant reduction in our city’s nightlife”, the latest figures “will be no shock to most Londoners”.
She said: “In the absence of any improvement on this whatsoever from the Mayor, his Night Czar or his Deputy Mayor for Culture, I am bringing together delegates from across the nightlife sector at a roundtable in City Hall. Together we will examine how we can best support the sector to thrive, allowing the industry’s many businesses and the wider London economy.”
A spokeswoman for the mayor stated: “Pubs are an essential part of London’s communities but they have faced enormous challenges in recent years due to the devastating consequences of the pandemic, increasing rents and business rates, staff shortages and the inflated costs of living and doing business under the previous Government.