A total of 25 pubs are closing every week, says BBPA

16th March 2011, 11:35am

Pubs are closing at the rate of 25 per week as the trade continues to face tough conditions in all parts of Britain, according to new figures released today.

The British Beer & Pub Association (BBPA), which commissioned the survey, says that the Government should abandon plans for a 7% increase in Beer Tax in the Budget next week.

The BBPA believes that with the right policies, the beer and pub sector, which employs almost one million people, could play a leading role in bringing the economy out of recession.

While the closure rate has slowed from last year's 40 per week, there were almost 1,300 fewer pubs in Britain by the end of 2010. With a typical pub employing around 10 people, this represents a net loss of jobs of around 13,000 across the county. 

Pubs are closing in every part of England, as well as in Scotland and Wales. The rate of losses is highest in London and the North West, though all regions are suffering a decline.

With beer still the key seller for pubs, huge rises in Beer Tax, which has gone up by 26% since March 2008, are a huge drag on the sector, says the BBPA. To add to the problem, the Government plans a further 7% rise in duty in the Budget, through the controversial policy of the beer duty escalator. 

This is set to add 2% above inflation to the existing duty burden, which would add 3.5 pence in Beer Tax on a typical pint, with bar prices set to rise by up to 10 pence a pint. Taken with the VAT increase in January, the Government is heading for the biggest ever tax hike on beer in a single year.

BBPA chief executive Brigid Simmonds commented: "The closure of 25 pubs every week is bad news for the economy, as the sector plays such a vital role. It's also a blow for local communities, with pubs often acting as the hub of local life.

"With the right policies, this vital part of our tourism and hospitality sector could be creating new jobs, and helping to bring Britain out of recession. If we really do have a pub-friendly government as the Prime Minister says, the time to act is now – with a freeze in beer duty in the Budget."

Related Articles:

• 23 Jan 2012 - Beer sales continued to decline in 2011, finds latest UK Beer Barometer
• 19 Jan 2011 - Beer taxes already among highest in the world, warns BBPA
• 01 Oct 2010 - BBPA meets with Home Office on Licensing Law change
• 02 Jun 2010 - BBPA issues guidance to pubs for World Cup
• 21 May 2010 - Pub beer sales drop by 8.8%, says BBPA
• 01 Mar 2010 - BBPA produces guide for pubs during British Tourism Week
• 04 Feb 2010 - Pubs are still closing but at a slower rate, says BBPA
• 28 Jan 2010 - Beer sales could be improving, says BBPA
• 31 Aug 2009 - BBPA publishes statistical handbook
• 29 Jul 2009 - Beer sales are beginning to improve, says BBPA
• 10 Mar 2009 - BBPA chief steps down after 10 years
• 19 Sep 2008 - BBPA chief hits back at sweeping generalisations
• 15 Feb 2008 - BBPA proposes tax freeze on beer
• 19 Nov 2007 - BBPA midlands elects new chairman

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