Pubs closed at the rate of 27 a week during 2007 as the impact of the smoking ban and spiralling costs combined to weigh on the sector, according to figures from the British Beer and Pub Association (BBPA), which show the pub closure rate is seven times faster than in 2006, and 14 times faster than in 2005.
In total, 1,409 pubs closed in 2007, compared to 216 closures in 2006, and just 102 in 2005. Urban pubs have been hit the hardest, with 2% of all urban pubs closing in the last six months.
“Britain’s pubs are grappling with spiralling costs, sinking sales, fragile consumer confidence and the impact of the smoking ban,” said Rob Hayward, BBPA chief executive.
“These figures show the stark reality of the pub trade today, in contrast to the hype surrounding the myth of ‘24-hour drinking’ and extended pub opening hours. Pub closures at this rate are threatening an important hub of our social fabric and community history. What we need to stop the decline is support from government and the general public.”
Total alcohol sales in pubs have fallen by around 6% in the last 12 months, while a rise in food sales has not relieved the pressure as the additional associated costs have squeezed margins.
“Some commentators would have us believe that the pub trade has faced a bonanza following the introduction of the Licensing Act in 2005,” said Hayward.
“Nothing could be further from the truth. The industry is facing very difficult trading conditions, which is resulting in the closure of hundred of pubs across the country. This is no time to place further regulatory or tax pressures on a great national and community asset.”
