Will your local pub be next to close?
Jan 3 2009 by Dan Warburton, The Journal
ONE North East pub closes every 10 days, a Journal investigation has discovered.
And drinkers are downing nearly a quarter of a million fewer pints every day as they stay at home.
The economic crisis, alcohol taxes and cheap supermarket booze are causing a crisis in the region’s pub sector.
And the impact is being felt in rural and urban areas across the North East, with pubs estimated to bring £80,000 a year into their local economies.
A Journal investigation has discovered 80 licensed premises have closed in the past two years, with areas of Sunderland, Derwentside and Durham city the worst hit.
North East drinkers are also more likely to stay away from the pub – with sales falling at twice the national average.
Licensing minister Gerry Sutcliffe last night admitted pub closures would accelerate further unless the Government did more to support them.
He said: “We have to make sure we are aware of the impact of what we do and that we support community pubs, otherwise many more could close.”
Analysis by the British Beer & Pub Association suggests the number of pints being pulled across the region has plunged 15.7% against last year – almost double the national average drop of 8.4%.
In total, 20 million fewer pints were sold in July to September 2008 compared with the same period in 2007 – a fall of 225,000 pints a day.
The smoking ban is also cited as a key contributor to the declining figures, coupled with the impact of the economic downturn on the spending power of North East drinkers.
But blame is also pinned on the plummeting cost of supermarket alcohol and the heavy tax imposed on beer, which is deterring potential punters.
It is thought people are switching from buying beer at the bar to drinking cheap alcohol at home.
Tax on beer has gone up 17% after Alistair Darling imposed a new 9% duty on the product in November’s Pre Budget Report. But last night it was claimed a pub contributes, on average, £80,000 to the local economy – a particularly important factor for rural communities.
Campaigners said the importance of the local far outweighed its success as a business.
Dave Anderson, Labour MP for Blaydon, is spearheading an effort to try and lower the tax levied on beer in pubs. He said it was essential officials rescue the ailing industry in a bid to save jobs.
He said: “Pubs are part of the social fabric in every village and town in this country, but the smoking ban, increased taxes and the recession have all played their part in its decline.
“I’m very passionate about it and I think we should be doing all we can to save them. They employ a lot of people.”
Meanwhile a spokesman for the Commission for Rural Communities said the local pub attracted tourists and contributed to the economy.
He said: “Like the local post office, the village pub is more than just a business.
“It is at the heart of the rural community providing a vital social and economic role and closures are acutely felt.”
John Grogan, chairman of the all party parliamentary beer group, said it was important the Government recognised the importance of pubs to local communities.
He said: “It is now a race against time to convince ministers that the British pub has as valuable a place in our community as the local post office and is just as much under threat.”
Lee Le Clercq, the North of England regional secretary of the British Beer & Pub Association, said: “The accelerating decline in beer sales is a clear sign of a worsening economy, worried households and weakening spending.
“Government needs to be looking to ease the constraints of the tax and regulatory burden on our sector. We’re not looking for a handout, just a hand-up.
“They must abandon their current plans to increase beer taxes by a third through a new tax escalator. They should also pull back from their current alcohol policy agenda which would introduce even more regulation on how alcohol is produced and sold in Britain.”
Page 2: . . . and it’s going to get even worse in 2009
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