First of the States to restrict new pubs (7)
I believe the answer is:
taverns
'pubs' is the definition.
(a tavern is an inn or pub)
'first of the states to restrict new' is the wordplay.
'first of the' becomes 't' (1st letter of 'the').
'states' becomes 'avers' (to aver is to declare or state).
'to restrict' indicates putting letters inside (inserted letters are restricted or trapped).
'new' becomes 'n' (common abbreviation eg NT for New Testament).
'avers' going around 'n' is 'averns'.
't'+'averns'='TAVERNS'
(Other definitions for taverns that I've seen before include "Old pubs" , "Hostelries" , "Inns, pubs" .)