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Hundreds of British hospitality businesses shut their doors for good in the final months of 2025, as they warned over further tax hikes following the autumn budget. Industry data showed that there was a particular jump in closures across restaurants and casual dining business. Data from NIQ showed that the hospitality sector saw 382 net closures the equivalent of four each day in the final three months of 2025. It represented a downbeat end to the year after a ‘slight growth’ in the number of venues over the first nine months of the year. The country had 98,914 hospitality sites, covering pubs, restaurants, cafes and other venues, at the end of December as a result. Experts linked the fall, which took place at a key trading period, to continued inflation for many major costs, as well as fragile consumer confidence and spending. The number of restaurants slid by 1% between September and December, with a 1.8% fall for casual dining business, representing 241 closures in total. However, other parts of the sector were more robust, with the number of bars rising by 1% against the previous quarter, with many customers opting to spend on drinks over more expensive meals. The closure data comes amid a challenging backdrop, with industry bosses warning that most sector firms face higher tax payments from next year due to changes to business rates. The government has indicated it is planning to announce additional support measures for pubs, but other parts of the sector, such as hotels and music venues, have warned there could be closures or price increases without also receiving support measures. Karl Chessell, director for hospitality operators and food at NIQ, said: ‘An acceleration in closures in the final quarter of 2025 shows the toll that relentless increases in operating costs are taking on hospitality. ‘The dip is particularly concerning as it came during hospitality’s most important trading period of the year, when businesses usually build the cash reserves to get through the quieter start to the new year. ‘Despite the government’s recent rethink on rates for pubs, conditions are unlikely to get any easier in 2026, and business confidence and sales growth both remain weak.’ By Henry Saker-Clark, PA Deputy Business Editor Press Association: Finance source: PA Copyright 2026 Alliance News Ltd. All Rights Reserved.
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