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Funding welcome - but pubs need more support

Written by Sarah Lee | Oct 21, 2025 9:23:47 AM

Rural pubs are the heart of village life but many are barely hanging on. The government’s £440,000 funding boost will help some pubs diversify into cafes, shops, and play areas, yet with hundreds of closures every year and soaring costs, it’s clear that more must be done to secure their future.

The Countryside Alliance welcomes the recognition from the government that rural pubs are far more than places to eat and drink, they are vital community hubs, tackling loneliness, providing local jobs, and often stepping in to replace services that have disappeared from villages. We are pleased to see further funding for Pub is The Hub, whose work in helping pubs diversify has already delivered enormous social value.

However, while the £440,000 package announced on Friday 17 October is a positive step, it is unlikely on its own to stem the tide of closures or offset the rising costs that are driving many publicans to the brink. Rural pubs face a perfect storm of challenges:

  • High energy and food costs which eat into already tight margins.
  • Rising wage bills, employment taxes and staff shortages in hospitality.
  • Punitive alcohol duty and business rates, which disproportionately affect small independent pubs.
  • Declining footfall in many villages as populations age and rural transport dwindles.

This funding will undoubtedly help a small number of pubs broaden their services, but with more than 400 rural pubs closing each year, it will only touch the surface of a much bigger problem.

What is needed is a comprehensive rural pub strategy, including:

  • A long-term reform of business rates and beer duty to protect community pubs.
  • Targeted support for energy costs in hospitality.
  • Investment in rural transport to ensure pubs remain accessible.
  • Ongoing funding for diversification projects like those run by Pub is The Hub – not one-off pots of money.

Rural pubs can and do thrive when given the right environment. They generate far more in social value than they receive in financial support, and government must match today’s welcome announcement with a broader, long-term commitment to ensure our great British boozers remain at the heart of rural life.