Plans are being considered to amend licensing laws in England and Wales to allow pubs to operate until later hours, aiming to enhance the hospitality sector. However, industry representatives express skepticism, suggesting that the changes may not significantly alleviate the ongoing challenges posed by rising operational costs and a decrease in consumer spending due to the cost-of-living crisis.
The government intends to simplify regulations around pub licensing, which would facilitate late openings, outdoor service, and live performances. While some trade organizations and executives in the pub industry support this initiative, many operators remain doubtful about its effectiveness in the context of broader economic challenges.
Tim Martin, founder and chair of the Wetherspoon’s pub chain, referred to the government’s strategy as only a modest improvement. He noted that economic pressures, mainly from high taxes and costs, have forced many pubs to reduce their hours or shut down entirely. Reports indicate that the trend of pub closures continues, with data earlier this year showing a closure rate of one pub per day in 2025.
The chair of the Campaign for Pubs highlighted the pressing issues of rising operational costs and restricted consumer spending, arguing that these factors must be prioritized for effective relief. Industry insiders have observed a consumer shift towards earlier dining and drinking, reflected in data showing a decline in sales after 10 PM.
Additionally, some pub owners are calling for a reduction in VAT on alcoholic beverages served in pubs, asserting that supermarkets have an unfair competitive advantage that promotes in-home drinking.
While some trade bodies have welcomed the proposed reforms as a necessary modernization of the licensing framework, they also stress the need for government measures to alleviate cost pressures, particularly regarding business rates. The Department of Business and Trade emphasizes that the proposed changes aim to provide more operational flexibility without mandating late openings.
Source: https://www.theguardian.com/business/2025/oct/09/uk-pubs-licensing-plan-costs-landlords