Record number of pubs closing

4th March 2009, 8:00am

A record 2,000 pubs have now closed since the Chancellor increased beer tax in the 2008 Budget, resulting in 20,000 job losses over the last year, according to the British Beer & Pub Association (BBPA).

Further research suggests that 75,000 further jobs are under threat in the industry, five Ministers are to face cross examination by MPs at UK Pubs Crisis Ministerial Summit, and 70% of people want the Chancellor to drop plans for beer tax increases in next month's budget.

The two beer tax increases in 2008 alone placed an additional £520 million cost burden on the sector.

Rob Hayward, chief executive of the BBPA, said: "There was understandable political concern about the recent 850 job losses at Mini. The pub sector is losing nearly twice as many jobs every month. Furthermore, when a pub closes a family loses not only its livelihood, but its home.

"The beer and pub industry is not looking for a handout, just hands off any further tax or regulation increases. We are urging the Government to abandon the 2 per cent over inflation drinks' tax escalator due to start in March and pledge no further increases in excise duty in this year's Budget.

"We are also asking them to abandon the Mandatory Code in the Police and Crime Bill, which Government say will cost the industry an extra £300 million this year alone and lead to further job losses and pub closures."

CAMRA chief executive, Mike Benner, voiced his opinion on the matter: "There are sound reasons for the Chancellor to change his mind on this issue. The entire economic picture has changed beyond recognition in the last 12 months and with the return of Keynesian economics, I hope the Chancellor might draw some inspiration from one the great economist's most famous lines - 'When the facts change, I change my mind.' Scrapping the increases in beer tax would be a truly popular piece of Keynesianism."

Political pressure on Ministers has increased over the last fortnight after Britain's largest union Unite, which has 20,000 members in the industry, came out in strong support of the campaign to scrap further beer tax increases.

The Liberal Democrats and Conservatives have also supported action to save the pub. The Conservatives joined the campaign last week with the official launch of their own "Save the British Pub" campaign, mirroring many of the "Axe the Beer Tax - Save the Pub" plans.

Related Articles:

• 01 Jun 2009 - New figures show UK near top of EU beer tax league
• 14 May 2009 - Mandatory alcohol code is simply 'more red tape' for pubs
• 28 Apr 2009 - Beer sales continue to slide
• 22 Apr 2009 - Industry react angrily to the Budget
• 20 Apr 2009 - 90% of public want taxes reduced or frozen in Budget
• 13 Apr 2009 - 'We will not punish those who drink responsibly'
• 08 Apr 2009 - Tax rises will result in pub job losses
• 03 Apr 2009 - Over 1,130 pubs owned by pubcos have closed
• 31 Mar 2009 - Sun advert launches 'Text the Chancellor' campaign
• 18 Mar 2009 - New figures show 3.2% fall in alcohol consumption
• 17 Mar 2009 - Drinks industry leaders meet with the Chancellor
• 16 Mar 2009 - Minimum alcohol price plans to be unveiled
• 13 Mar 2009 - Taxation on pubs has gone too far, says Wetherspoon
• 12 Mar 2009 - 30,000 people support local pubs
• 10 Mar 2009 - BBPA chief steps down after 10 years
• 06 Mar 2009 - Closed pubs don't pay tax
• 29 Jan 2009 - Carlsberg lends pubs a helping hand
• 19 Jan 2009 - Pub closures climb towards six a day
• 14 Jan 2009 - Mixed fortunes for Britain's pubs
• 21 Nov 2008 - Pub openings worth £203.5m to the treasury
• 10 Nov 2008 - Thousands of pubs could get tax reduction

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