Pub insolvencies surged in Q2 and Q3 2025, reversing the fragile recovery seen in early 2025, according to analysis by East Anglian accountancy firm Price Bailey. According to their research, a total of 219 pubs entered insolvency in Q2, followed by 189 in Q3, up from 163 in Q1.
The spike follows April’s rise in Employer National Insurance Contributions and the National Living Wage, which squeezed margins across the hospitality sector. June alone saw 84 pub insolvencies, the highest monthly total in over a decade.
Price Bailey also analysed the credit risk scores and balance sheets of all 37,045 pubs and bars in the UK. It found that 4,742 pubs are both technically insolvent and rated Maximum Risk on the Delphi credit score, up from 4,154 a year ago, a 14% increase.
According to Price Bailey, these businesses are highly vulnerable to cash flow insolvency and face significant barriers to accessing finance without personal guarantees. Many are likely to face winding-up petitions or dissolution notices within the next 12 months.
Matt Howard, Head of the Insolvency and Recovery Team at Price Bailey, comments:
“The April tax and wage hikes, introduced in last year's budget, were expected to have a delayed impact, but the insolvency data shows a sharp and immediate effect. Many pubs had already exhausted their financial buffers and simply couldn’t absorb the additional costs.”
“We’re seeing a sustained rise in insolvencies through Q2 and Q3, not just a one-off spike. The combination of rising payroll costs, energy prices, and inflation is proving fatal for pubs operating on thin margins.”
He adds: “It’s not just pubs feeling the pinch, consumers are too. Tax rises are eroding disposable income, leaving households with less to spend on leisure. That’s a double hit for pubs: rising costs on one side and falling footfall on the other.”
