Pubs are still closing but at a slower rate, says BBPA

4th February 2010, 10:11am

Pubs are now closing at a rate of 39 a week, down on the 52 a week closure rate in the first half of 2009, according to the latest survey from the British Beer & Pub Association (BBPA).

A net total of 1,013 pubs shut their doors for the last time between July and December 2009, with the loss of over 10,000 jobs in local communities across Britain.  A total of 2,365 pubs closed during the whole of 2009.

Although these latest figures are slightly down, closures remain at high levels, says the BBPA. There are now 52,500 pubs in Britain – well down on the 58,600 pubs operating when the Licensing Act came into force in 2005. In addition to the loss of these vital community hubs, the Government is set to lose over £250 million in tax revenues this year, if the current closure level continues.

The slowing rate of closure is a sign that things may be starting to improve, says the BBPA, as economic conditions ease and the recessionary bite slackens.  However, significant pressures on the sector remain.

The BBPA warns that Government should be seeking ways to avoid intensifying those burdens.  The tax burden remains a key issue. Government plans for another above inflation increase in Beer Tax in the forthcoming Budget will be a further blow to struggling licensed premises. The Government should equally stop increasing the red-tape burden on the sector, which increases the complexity and cost of running a pub.

While all types of pub are closing, in the second half of 2009, the number of independently owned 'free houses' fell more rapidly than the number of pubs in the leased and tenanted sector. There were 576 closures among free houses (22 a week), compared with 320 among tenanted pubs (12 a week), The survey also reveals that a significant number of pubs were sold into the free trade, with 735 being transferred into free house ownership from July to December 2009.

Brigid Simmonds, chief executive of the BBPA, said: "Continuing pub closures, and the five per cent per cent decline in pub beer sales we reported last week, confirm that pubs are not out of the woods yet. In the current climate, the last thing pubs need is a higher tax bill in the Budget. This won't help the public finances either, as closing pubs, job losses and falling beer sales mean less tax revenue for the Treasury."

"Pubs make a significant and valuable contribution to both the national economy and community life.  It's time for Government to work with our industry and put into practice policies that support pubs and local communities."

Related Articles:

• 30 Jul 2010 - Hike in beer sales thanks to World Cup and good weather
• 08 Jul 2010 - Hospitality Industry calls on government for fairer rules to tackle competition from supermarkets
• 01 Jul 2010 - Closure threat eased for pubs as mp pushes for new planning law bill
• 21 May 2010 - Pub beer sales drop by 8.8%, says BBPA
• 28 Jan 2010 - Beer sales could be improving, says BBPA
• 29 Oct 2009 - Beer sales slide continues to slow
• 22 Oct 2009 - Office of Fair Trading gives beer ties the all-clear
• 28 Sep 2009 - Two-thirds of a pint measure set to be introduced
• 31 Aug 2009 - BBPA publishes statistical handbook

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grant sutton

26 February 2010 at 12:36pm

i am glad more pubs are closing, with smoking ban, increased drink prices, increased taxi fairs, more trouble with the so called pub watch in effect, which is being abused by power freaks in towns! People are having more fun at home and house parties, which are cheap and friendly, without any person upsetting you and then yourself being arrested joy! What next a complaint by the pubs and mps saying where having too much fun without paying TAX lol

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