Thousands of small pubs ‘to close’

Thousands of community pubs will be forced to close in the next four years unless the government reverses hikes in beer tax costs, the Campaign for Real Ale (CAMRA) warned today.

The facts:

The group staged an angry protest against beer tax – which has increased 10 per cent since March – during the opening day of the Great British Beer Festival in London.

According to new figures published by the group, the average price of a pint of real ale has risen 12p in four months, while lager has gone up 14p during the same period. It also said nearly two-thirds of pub goers blamed the government for the hikes.

Falling beer sales, competition from cut-price supermarkets and higher taxes are taking a toll on landlords, many of whom have been forced to pass costs onto punters or face ruin.

CAMRA said it feared prices would go up by 10 per cent this year alone and that by the Olympics Games in 2012 a pint in a London boozer could top £5. It called on tax chiefs to prevent this by revising fiscal plans for the next four years.

They said:

CAMRA chief executive Mike Benner said: “This year's devastating increase in beer tax has forced publicans to increase prices and pub-goers are right to lay the blame at the door of the government.

“High beer taxes threaten to prevent many low and moderate earners enjoying a regular pint at their local pub. We desperately urge the chancellor to think again before he goes down in history as the chancellor who closed thousands of community pubs.”

We say:

Small tenant landlords are up against it and it’s hard to imagine how many will survive in such unfavourable market conditions. Competition from discount shops, a wobbly economy and the smoking ban have all put a dent in sales.

Add inflation-busting tax rises and you have a lethal cocktail for landlords, many of whom have already been forced to call last orders for good. We think ministers have failed to grasp community-enhancing benefits well-run pubs provide, which could help combat anti-social conduct and binge drinking.

Forcing these small businesses to close will encourage more drinking in public places and potentially more problem behaviour.

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By News Desk  on   Aug 05,2008

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Keywords

pubs    CAMRA    tax    small business    food    drink    Olympics   

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