Pub industry hit by rising costs

The number of British pubs having to close has accelerated as landlords and brewers struggle with higher costs and fewer customers, a trade body said.

The UK is seeing 36 pubs a week close their doors, according to the British Beer and Pub Association (BBPA).

That's nine times faster than in 2006 and 18 times faster than in 2005.

With the industry under huge strain as cash-strapped customers stay at home, the BBPA is calling on the government to cut duty on alcohol.

"Sliding consumer confidence and spiralling inflation are hitting pubs in two ways," said BBPA chief executive Rob Hayward.

"Not only are the costs of running a pub increasing, but fewer people through the door means less cash in the tills."

Recent BBPA figures showed that in the three months to July, beer sales in pubs were down 10.6%.

'Under threat'

Despite this, the BBPA and other campaigners say the government is increasing the burden by shackling the industry with high excise duty.

In March, alcohol tax rose 6% above inflation, boosting the cost of a pint by 4p.

Chancellor Alistair Darling has said that alcohol duty would continue to rise by 2% above inflation in each of the next four years.

"Such policies will only drive up costs for pubs and prices for punters," Mr Hayward said, warning that these taxes are putting thousands of community pubs are under threat.

He says it is in the government's best interests to reverse its decision to increase beer and alcohol duty in the next four Budgets as the money it makes from the tax will decline as alcohol sales drop.

"Pubs are essential local services and the government has a moral duty to protect them," said Campaign for Real Ale chief executive Mike Benner.

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Campaign for Real Ale
British Beer and Pub Association
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