Pub closures rise to record 52 a week

22nd July 2009, 7:42am

A record 52 pubs a week are now closing in Britain, leading to the loss of 24,000 jobs in the last year, according to new figures compiled by CGA Strategy, released today by the British Beer & Pub Association (BBPA).

The figures for the first six months of 2009 show the rate of pub closure has increased by a third, up from 39 pubs a week in the last six months of 2008.

Over the last 12 months, 2,377 pubs have closed, costing 24,000 jobs. In the last three years a total of 5,134 pubs have closed. There are now 53,466 pubs in Britain, down from 58,600 in the year before the Licensing Act came into force.

BBPA chief executive David Long said most of the blame should be laid with the government: "The recession is proving extremely tough for Britain's pubs. However, those economic pressures have been made much worse by a government that has continued to pile on tax and regulatory burdens.

"The last two Budgets have seen a 20% increase in beer tax, which alone has added more than £600 million to our tax bill. In addition, government continue to press ahead with the Mandatory Code of Practice, which they say heap at least £30 million of extra red tape cost on pubs in the first year alone.

"While every other sector seems to receive a sympathetic ear and a tax payer funded handout from government to tide them through the downturn, all we are getting is a deaf ear and a higher tax bill."

The BBPA figures also show how pub closure is reducing Government tax revenues.
The industry's total tax bill now stands at £6.1 billion a year. Every pub contributes £107,000 in tax a year – 30% of turnover. Pub closures over the last year have therefore cost the Government more than £254 million in lost taxes – a loss that is increasing by more than £5.5 million a week.

Sector job losses are also costing the Government an additional £1.53 million a week in job seekers allowance.

"Closing pubs are not only a loss to communities, but a loss to the Treasury," said Long. "Government should look at valuing and rewarding pubs as community assets. Not only would this have social policy benefits by supporting a hub of community cohesion, but financial policy benefits in terms of tax revenues, particularly at a time when the public purse is stretched."

The BBPA also highlights the scale of job losses in the sector, which it says is often overlooked and compares it with the furore generated by the job losses at the Mini car plant earlier this year.

"Every week, a further 461 jobs are lost in our sector. That's more than two Mini car plants a month." said Long.

"Government now needs to listen to the pub sector in the same way it listens to other sectors suffering this level of job losses. Not special treatment, just equitable treatment. As a first step, Government should commit to not increasing the cost and complexity of running a pub, by stepping back from any more tax or red-tape increases."

Related Articles:

• 23 Mar 2010 - 67% of British public want Government to scrap beer tax increase
• 09 Dec 2009 - Government makes five times more money from beer than pub companies
• 31 Aug 2009 - BBPA publishes statistical handbook
• 26 Aug 2009 - Industry reacts angrily to banning of beer tax advert
• 29 Jul 2009 - Opposition to mandatory alcohol code is growing
• 29 Jul 2009 - Beer sales are beginning to improve, says BBPA
• 24 Jul 2009 - Recession busting course for small hospitality businesses
• 21 Jul 2009 - Food and Fuel buy four Enterprise pubs
• 17 Jul 2009 - Wetherspoon open new pub and hotel in Newport
• 16 Jul 2009 - Some banks imposing blanket bans on pub and restaurant loans, warns FPB
• 16 Jul 2009 - Biggest ever campaign to encourage responsible drinking announced
• 16 Jul 2009 - European rules must change for UK government to support pubs
• 01 Jun 2009 - New figures show UK near top of EU beer tax league
• 28 Apr 2009 - Beer sales continue to slide
• 22 Apr 2009 - Industry react angrily to the Budget
• 21 Apr 2009 - 'We have 48 hours to save the pub industry'
• 20 Apr 2009 - 90% of public want taxes reduced or frozen in Budget

Click here to submit a comment!

Have your say!

To comment on this article, simply enter your name and email and send us your views. Please note that your comment will appear publicly below this article once it has been processed. For enquiries please email info@eatoutmagazine.co.uk.

Name

Leave blank

Email

Comment (max 800 characters)