While much of the leisure industry is once more beginning to post growth after several difficult years, it seems that the hardship for Britain’s pubs is set to continue. Surprisingly, as the economy has shown signs of slight recovery, the number of weekly closures has rocketed.
According to the latest figures released by the Campaign for Real Ale (CAMRA), 26 pubs across the country now close their doors on a weekly basis, up from the 18 per week recorded only a few months ago. This adds up to a 50 per cent leap in less than six months, raising serious questions about the future of the traditional British local.
While landlords widely believe that this demise of the quick half pint is due to lower prices offered by supermarkets, this is not necessarily the case. In fact, beer and lager sales in supermarkets and off-licenses have now dropped to a ten-year low of 13.02 million barrels in the year to the end of March according to the British Beer and Pub Association.
This compares poorly to the 13.77 million barrels sold between March 2011 and March 2012.
The Grocer, a trade journal for the food and drinks industry, believes that a number of factors are contributing to the problems faced by breweries, landlords and retailers.
It says; “Beer and lager have lost share through 18-25 year olds switching to cider, a trend driven by flavoured ciders and heavyweight marketing activity by brands.
“But the economy is also continuing to take its toll on lager and ale, particularly in Northern England.”
As a means of assisting struggling pubs, the Government have agreed that small, independently owned community pubs should be allowed to pay a reduced business rate while the volume of closures remains at a critical level. Furthermore, the general cut in corporation tax and cutting of beer duty by 1 pence per pint in the March budget should also go a little way in helping frustrated landlords get a grip of their finances.
A spokesman for the Department for Communities and Local Government claimed the Government is willing to do everything in its power to prevent further widespread closures. Numerous new measures have already been passed this year in order to shield smaller pubs from the tough economic conditions.
He says; “Local pubs are part of the social and cultural fabric of this nation and we are determined to protect them.
“That’s why we are cutting taxes for small community pubs by doubling small business rate relief for three and a half years and reducing corporation tax to 20 per cent, helping small and medium size pubs.
“On top of this the Community Right to Bid is already giving communities the power to step in and save their treasured locals from closure.”
Do you think any more can be done in terms of legislation to save small pubs, or is it simply a case of waiting until the economy recovers before this traditional industry can become profitable again?
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