Pubs to get £440k to broaden services amid closures

The Government has announced £440,000 in funding to help local pubs “broaden their services” and stay at the heart of their communities.

The move comes after a bleak year for UK pubs and their patrons. Earlier this year, data showed that nearly 300 pubs have shut down across England and Wales between 2024 and 2025, leading to an estimated 4,000 job losses. 

Rising costs, staff shortages, and hiked business rates have left many pubs circling the drain. So while the new funding is a welcome gesture, it may be too little, too late.

After years of damaging financial decisions, many might feel this gesture barely scratches the surface of the challenges Britain’s once-thriving pub culture is currently up against.

What will the £440k be used for?

The Department for Business and Trade (DBT) has pledged £440,000 in support for UK pubs via the non-profit organisation, Pub is the Hub, which has already helped hundreds of village pubs expand into multi-purpose community hubs. 

Pubs can use the fund to support projects like community cafés, village stores, post offices, or play areas. Pub is the Hub has already identified more than 40 pub projects currently stuck in limbo due to a lack of funding in its Social Value Report.

The scheme will benefit both pubs and their communities, by fostering stronger connections, increasing employment, while also giving pub owners an extra income stream.

So far, the fund has attracted a positive reaction, with trade bodies praising the initiative as a lifeline for rural pubs, particularly those hit with soaring energy bills and staffing shortages.

Nick Mackenzie, CEO of Greene King and Co-Chair of the Licensing Taskforce, who slammed hospitality business rates earlier this year, commented:

“Our pubs are more than bricks and mortar where people eat and drink – they are places where people come together for all occasions and celebrations, they offer local employment and careers for people of all ages and can help in tackling loneliness. 

“Additional access to funding and less red tape is some welcome news to help pubs continue to adapt to meet the needs of their local communities.”

Why pubs are still closing in record numbers

Alongside the praise, some industry members remain sceptical. The announcement follows criticism of the Government’s treatment of the sector after another year of record closures.

In 2024, around 300 pubs closed permanently, with independent and family-run venues hit hardest. And the causes are depressingly familiar. 

Rising employer National Insurance contributions and steep energy bills have sent overheads spiralling, while the ongoing effects of the cost-of-living crisis have meant that customers are spending cautiously.

While industry leaders welcome the fund as a positive step, many might consider it a drop in the ocean. 

What pub operators should know

Small village pubs offering, or planning to offer, community services will be eligible to apply for the scheme. The money can be used for equipment, refurbishment, or expanding services, such as adding a café, shop, or parcel collection point.

Detailed guidance should follow soon, but applications will likely be managed by local councils in partnership with Pub is the Hub.

While the fund offers some short-term relief, pub owners and hospitality leaders say that lasting change will require deeper structural reform in the upcoming Autumn Budget, particularly around business rates, tax relief, and energy costs.