Around 200 pubs closed their doors in the first three months of this year, according to data obtained by accountancy firm Price Bailey.

Its research also revealed that 620 pubs in England, Scotland and Wales entered insolvency in the past 12 months – a 68% increase compared to the previous year’s figures (369).

Separate data commissioned by Price Bailey from National Statistics showed that more than a third (35%) of British pubs reported turnover was rising rather than falling (16%) – an improvement on six months ago when 7% reported rising turnover against 58% stating takings were down.

“While there are early signs of an improvement in trading conditions for pubs, insolvencies in Q1 reached the highest quarterly level in more than a decade, Matt Howard, head of the insolvency and recovery team at Price Bailey said.

“The improving economic outlook may come too late for many pub businesses that have accumulated unmanageable levels of debt over a testing few years.

“There is often a lag between a return to more robust economic activity and declining insolvencies.”

He added: “Banks will likely start to put increasing pressure on debtors to perform or pay off loans. Focus will start to shift from financially stressed businesses to start-ups and those with better

The research showed how more than a fifth (22%) of pubs are operating reduced trading hours due to staffing challenges however, this was a slight improvement since the end of last year (29%).

Fewer than one in 10 (8%) of operators have hired staff in the past month compared to 2% six months ago. “Publicans are still having to restrict opening hours and scale back the services they provide to customers,” Howard added.

Furthermore, six in 10 (61%) of licensees were considering raising prices to cover energy costs, down from three quarters (75%) at the end of 2022. Half (50%) and more than a third (36%) were considering increasing prices to cover more expensive raw material and labour costs respectively – a drop from 54% and 45% six months ago.

However, the chartered accountancy firm stated while many large groups and small independents were struggling, new types of pubs were ‘thriving’.

Howard said: “Even though many of the large pub chains and independent pubs are struggling, innovative new market entrants such as pubs owned by craft breweries and themed pubs such as the Boom Battle Bar chain are successfully shaking up the industry.”