The public house occupies a dual position in British society as both vital social infrastructure and a significant contributor to the hospitality economy. Yet the sector is experiencing a post-pandemic ‘perfect storm’, with closures accelerating despite sustained consumer demand. This critical review argues that the crisis reflects a policy paradox: government rhetoric celebrates pubs as community hubs, while fiscal and regulatory arrangements treat them primarily as alcohol-based commercial enterprises. Drawing on academic research, industry evidence and recent policy developments, the paper examines structural drivers of decline, including the financialised debt models of large pub-owning companies and the ‘Prime Land Paradox’, whereby the redevelopment value of pub sites may exceed their value as trading businesses. It also highlights varied trajectories: pubs of different formats face common pressures, while outcomes depend on ownership, debt exposure, location, property values and capacity to adapt. The resilience of some micropubs and community-owned venues further complicates any simple distinction between thriving gastropubs and declining wet-led locals. The paper concludes with targeted recommendations to stabilise the sector and protect pubs’ social value as accessible ‘third places’.