Pub closure rate slows, but beer tax hike imminent

Although the closure rate slowed from last year’s 40 per week, the number of pubs in Britain dropped by 1,300 over the course of 2010 – a net loss of around 13,000 pub jobs.

According to new research from the British Beer and Pub Association, the rate of loss was highest in London and the North West, although all regions across the UK are suffering.

Brigid Simmonds, chief executive of the BBPA, said that as the sector plays such a vital role in the economy, the closure rate is “bad news”.

“With the right policies, this vital part of our tourism and hospitality sector could be creating new jobs, and helping to bring Britain out of recession,” she said. “If we really do have a pub-friendly government as the Prime Minister says, the time to act is now – with a freeze in beer duty in the Budget.”

The BBPA is once again calling for a halt to the 2 per cent above inflation beer tax escalator, which is expected to add a further 10 pence on a pub-bought pint in next week’s budget.

The body claims that, along with the VAT increase in January, the pub industry is looking at the single biggest tax increase on beer in a single year.

Scrapping the measure could save over 10,000 jobs in 2011/12.

Pub jobs​

A further report conducted by Oxford Economics shows that the industry provides brewing and pub jobs to just under 1 million people, with 11,000 situated in London – the worst hit city for pub closures in the country.

The sector contributes over £21bn to the UK economy each year, and is responsible for £13.4bn of wages.