Accountancy firm Price Bailey has revealed that one-in-eight UK pubs are in “severe financial distress” and teetering on insolvency, with more than 8,600 venues reporting negative net assets, equivalent to 23 percent of the country’s 38,126 total.
Accountancy firm Price Bailey has warned that 13 percent of all UK pubs are currently in “severe financial distress” – up from 11 percent last year – with 23 percent of venues now reporting negative net assets.
Of the 38,126 pubs and bars across the country, 56 percent are also in the Maximum Delphi Risk category, the highest level when assessing credit risk, putting the majority of pubs on the edge of insolvency.
“These figures reflect a sector caught between rising fixed costs and fragile consumer demand, as stubbornly high inflation and tax pressures continue to erode disposable incomes,” said Matt Howard, head of the insolvency and recovery team at Price Bailey.
“The government’s decision to soften the impact of the 2026 ratings list will come as a relief to many publicans, but the underlying picture remains unchanged. Business rates were only one part of the pressure. Wage costs, tax rises, energy bills and inflation have been eroding margins for years.”
With the number of pubs meeting both technical insolvency and maximum credit risk criteria rising from one-in-ten to one-in-eight, Howard added “the structural challenges run far deeper than the ratings system alone.”
“Even as energy prices stabilise, wage costs and business rates remain structurally higher than pre-pandemic levels. For many pubs, this means that even periods of strong turnover are insufficient to restore profitability.”
“December is usually the month that keeps pubs afloat. When the festive season fails to deliver a strong cash buffer, January and February become far more dangerous.”
Glass almost empty
Accountancy report said… “The government’s decision to soften the impact of the 2026 ratings list will come as a relief to many publicans, but the underlying picture remains unchanged. Business rates were only one part of the pressure. Wage costs, tax rises, energy bills and inflation have been eroding margins for years…
Originally published on Coinslot on February 16, 2026. Republished with permission.