Local pubs are facing the need to spend a further £4,000 every year on National Insurance contributions, as the new employers rate came into force on Sunday.

Businesses now pay 15per cent on wages over £5,000, when they previously only had to cover 13.8per cent on any earnings above £9,100.

The British Beer and Pub Association (BBPA) recently that a pub closed its doors for good in Wales every three weeks in 2024.

The Golden Lion, in Magor, closed last month as the landlords cited the spiralling cost of utility bills as the main reason. The Castle Inn, Monmouth, also closed its doors earlier this year.

Laura Anne Jones MS, who is the Shadow Minister for Housing, Local Government and the Armed Forces, said the loss of more hospitality businesses would be detrimental to our communities.

“Sadly, for so many pubs, this latest tax bombshell may be the straw that breaks the camel’s back”

Ms Jones has called on those in power to act swiftly to support pubs and other hospitality venues to ensure they can continue to operate comfortably.

“We need to see a suite of measures to save our pubs,” she said.

“The cost of a pint needs to be brought down, and we must ensure that our British pub-going heritage is preserved for generations to come.”

The UK Government has previously said it is working with a taskforce of hospitality leaders, who now have less than six weeks to report back on how the Licensing Act (2003) should be improved.

The Chief Executive of the BBPA said the news is welcome but doesn’t go far enough.

“I look forward to the quick implementation of the recommendations the taskforce brings forward,” they said.

“The government needs to repeat this exercise across a number of other policy areas where urgent reforms are needed including business rates, packaging reform and much needed cuts to beer duty.”