Pub and bar industry struck by 512 insolvencies in 2022

Pub and bar company insolvencies have increased by 83% in the past year, according to a national accountancy group.

Figures from UHY Hacker Young revealed that insolvencies jumped from 280 in 2020/21 to 512 in the year ended 31 December 2022.

Pubs and bars have been hit hard by soaring costs across the board, ranging from food to energy.

The cost of living crisis has further dented consumer confidence, leading to reduced foot-fall, while rail strikes have continued to cause disruption.

Last week, a bar group revealed that it had lost "hundreds and thousands" in revenue as a result of industrial action.

The combination of factors interfering with post-pandemic recovery has tipped several businesses over the edge, as they have already had to scrape the last of their savings.

Peter Kubik, partner at UHY Hacker Young, said: "It's deeply concerning that so many pubs and bars are closing their doors. In addition to the financial consequences for owners and employees, the loss of a pub can be felt quite keenly by the community.

"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. 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."

He added: "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."

It comes after the British Beer and Pub Association called the chancellor to consider making "significant interventions" in the spring budget after recent ONS figures revealed that the UK had narrowly avoided falling into a recession last year.