• Pub closures now running at 39 a week
• Closure rate down on 52 pubs a week closing in first half
2009
• Closure rate down 25 per cent on first half 2009
• Total of 2,365 pubs closed in 2009
• 24,000 jobs lost in sector in 2009
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
historically 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. 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), despite the latter being far more
numerous overall - the remainder of closures are among managed pubs
(117 in total at a rate of five 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.
The survey also confirms that 'food led' pubs are continuing to
weather the current storm better than drink led premises, with a
closure rate of just 0.6 per cent in that category (130 pubs) The
closure rate among drink led pubs was over three times higher, at
2.1 per cent, or 883 net closures.
"The UK economy may be edging out of recession, but times remain
very tough for pubs," says Brigid Simmonds, Chief Executive of the
Beer & Pub Association.
"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.
With concerns about the future of many pubs still high, the BBPA is
urging the public to get behind its new 'I'm Backing the Pub'
campaign. To help ensure a more prosperous future for Britain's
much-loved locals, supporters can sign up at
www.backthepub.com.