The UKs Pubs Crisis Explained

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If you live in the UK,

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you'll know that,

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sadly, you don't have to walk very far to come across a boarded -up pub.

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In the past few years following the COVID -19 pandemic,

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the rate of pub closures has accelerated,

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driven by the cost -of -living crisis,

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higher rents and a slowdown in socialising.

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In fact, at the end of 2024,

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the total number of pubs across England and Wales had fallen below

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39 ,000 for the first time since records began,

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with at least 34 pubs shutting every month in 2024 on

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average.

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That's more than one per day.

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Already in the first three months of 2025,

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according to the Campaign for Real Ale,

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303 pubs across England,

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Scotland and Wales have shut,

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with this number expected to rise further due to changes to the government's budget

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effective from April.

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It's not just pubs either.

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Brewers,

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cafes, local nightclubs and restaurants are all suffering from the crisis facing

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the UK's hospitality industry.

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So in this video we'll take a look at the UK's pubs crisis,

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why it's getting worse and whether they can be saved.

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If you want more UK political drama from us,

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check out our podcast,

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Starmageddon,

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where we track the successes and failures of this new Labour government.

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Find it over on the TLDR Podcast's YouTube channel or in your favourite podcast app.

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First though,

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let's start with some historical context.

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Pubs have existed in the UK for hundreds of years,

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since at least the 17th century,

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when so -called coaching inns acted as hubs for travellers and locals,

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providing food,

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drink and accommodation.

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Then in 1830,

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the Beer House Act,

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which was repealed in 1993,

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made beer cheaper and more accessible,

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effectively allowing anyone with a dwelling to sell alcohol as long as

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they paid an annual license.

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This resulted in tens of thousands of new establishments,

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particularly in the rapidly industrializing north of England,

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with many pubs choosing to honor William IV,

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the governing monarch at the time,

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in their name.

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For the past 200 or so years,

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pubs have been a central part of British culture,

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representing the history and identity of local villages,

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towns and cities.

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British pubs are renowned across the world for their iconic naming practices,

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their painted signs,

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often featuring heraldic imagery like coats of arms,

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and also their cosy interiors,

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including wood panelling,

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timber ceilings,

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leather sofas with brass details,

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bar stools and various historical maps,

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sketches and photos of the local area often adorning the walls.

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However, in recent decades a pubs crisis has emerged.

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According to a 2014 report by the Institute of Economic Affairs,

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in 1969 there were approximately 75 ,000 pubs in

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the UK, but by 1980 this had fallen to 69 ,000,

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by 2003 to under 60 ,000,

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and by 2013 to under 48 ,000.

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As we mentioned earlier,

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today in England and Wales that number sits below 39 ,000,

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and will likely continue falling.

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pubs have largely suffered because of competition from supermarkets which can sell

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alcohol much more cheaply than pubs because they can squeeze brewers margins and

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also sell alcohol at a loss to attract customers in fact while the price of

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beer at a pub or bar has risen significantly faster than inflation in recent decades

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the price of beer off sales i .e from supermarkets and off licenses has

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risen more slowly than inflation

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This has caused pint prices to soar.

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In 1987,

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the average pint at a UK pub cost just 92p,

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but by 2024,

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it had surged to a national average of £4 .79.

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It's even higher in the capital,

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at £5 .59,

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apparently,

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although as a London -based office,

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we're pretty sure it's higher than this.

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Anyway,

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this has all contributed to fewer people being able to afford a pub trip,

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and fewer customers increases financial pressure on pubs.

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The pub's crisis was also exacerbated by the pandemic.

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Pubs were forced to close for months under strict social distancing rules,

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with some failing to reopen at all.

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While some pubs managed to get around the rules by serving a substantial meal

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with their alcohol,

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even if that was just a scotch egg,

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social trends changed as people got used to staying at home and not going out

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to socialise at the pub.

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Then in 2022,

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as energy costs and inflation soared after Russia's invasion of Ukraine,

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already struggling pubs were further hit and fewer people could afford paying

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for a pint,

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leading to hundreds of pubs closing permanently.

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This trend continued throughout 2023 and 2024.

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In February this year,

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businessman Sasha Lord,

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Greater Manchester's former nighttime economy advisor who originally endorsed Labour's

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campaign, wrote a letter to UK Chancellor Rachel Reeves,

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arguing that he was reconsidering his position as the hospitality sector faces,

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quote, irreversible damage.

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He also claimed the government's 2025 to 26 budget will

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cripple businesses across the sector and that its new tax implications will

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push many small and independent operators to breaking point.

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a quick online search shows a series of recent local newspaper stories about pub

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closures with publicans increasingly concerned about rising costs including

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higher employer national insurance contributions and a rise in the national minimum wage

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as a result some pubs are closing early while others are closing

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down

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So the big question is,

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is this a death sentence for British pubs or can they be saved?

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Well,

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one thing that could potentially help is the UK government's planned reforms to the business

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rate system,

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which we'll come back to in a moment.

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But right now,

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pubs are facing a significant decline in financial support from the government,

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with Reeves having cut the rate of business relief for the hospitality sector from

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75 % to 40 % in the 2025 -26 budget.

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This means that,

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as of the 1st of April,

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retail,

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hospitality and leisure businesses,

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like pubs,

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in properties with a rateable value,

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i .e.

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an estimated worth,

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of under £500 ,000 can get 40 % rather than the previous

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75 % off their business rates bills for the 2025 -26

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tax year,

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up to a £110 ,000 cap.

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However, the government says this is a temporary measure until 2026 -27,

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when they plan to permanently lower tax rates for hospitality properties.

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This will likely be funded by a higher multiplier on businesses worth over

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£500 ,000,

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including most large infrastructure businesses and warehouses,

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like those used by online distributors,

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in line with Labour's manifesto pledge to support the high street.

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For context,

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their 2024 election manifesto said that the current business rate system

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places an undue burden on our high streets and contains a pledge to

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reform it to level the playing field between the high street and online giants,

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better incentivise investment,

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tackle empty properties and support entrepreneurship.

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This would hopefully mean lower tax rates for pubs,

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supported by higher rates on big online warehouses,

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although it could also affect big anchor tenant businesses worth over £500

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,000 in town centres,

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like bigger pubs or those in highly valued historical buildings.

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But it's unclear whether these future changes to the UK's business rate system

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will come quick enough to save local pubs.

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There are other societal trends,

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including young people going out less,

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a fall in alcohol consumption,

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rapid urbanisation and a shift towards non -alcohol based activities,

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plus people generally spending more time alone and online,

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which are also putting community strongholds like pubs at risk of closure.

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So if we want to save them,

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it might take more than just the government.

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If you can,

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maybe consider spending a bit of time in your local this Easter weekend and

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help preserve an important part of the community,

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at least for a bit longer.

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Regardless,

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in 2025,

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one thing is certain.

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We can expect the news cycle to continue being dominated by these same major

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figures.

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But who's the most influential?

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In the most recent edition of our magazine,

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Too Long, we find out.

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That's because this 72 -page issue runs down our official ranking of

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the world's most influential people,

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in the magazine you'll learn the entire ranking plus we've written articles about all

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S… Speaker 2 (The UKs Pubs Crisis Explained)

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S… Speaker 2 (The UKs Pubs Crisis Explained)

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This includes the team debating their ranking of the top 25,

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S… Speaker 2 (The UKs Pubs Crisis Explained)

with it getting pretty heated at times.

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We could potentially have a monumental jump on our hands.

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Yeah.

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Hands up for...

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We also recorded the team reacting to the audience's rankings,

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so you can find out what they really think about your votes.

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It's not just about the most influential people either.

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Too Long also contains articles about the current state of the UK,

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the new right in Europe,

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S… Speaker 2 (The UKs Pubs Crisis Explained)

and if peace can really hold in Gaza,

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along with a whole variety of other stories.

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S… Speaker 2 (The UKs Pubs Crisis Explained)

Too Long truly is some of our very best journalism,

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with the audience consistently saying that previous issues vastly outstripped their

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expectations.

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So if you want a copy too,

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head over to toolong .news to pick one up.

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The UKs Pubs Crisis Explained

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