7,500 pubs ‘to close’ without government help

Thousands of “well-run community pubs” will be forced to call time forever unless ministers take steps to improve trading conditions, a campaign group has warned.

The facts:

In its pre-Budget submission to chancellor Alistair Darling, the Campaign for Real Ale (CAMRA) says high taxes and unfair competition from bargain basement supermarkets are crippling small pubs.

The group wants a reduction in VAT for pubs, a reduced rate of tax on beer sold in pubs and a standard low-end price per unit of alcohol to prevent supermarkets selling beer and spirits at a loss.

Small pubs have come under pressure from a combination of factors in recent years, including the rising minimum wage, high taxes and poor wine harvests which have pushed up prices, all set against the backdrop of negative economic growth.

Alistair Darling delivers his pre-budget report on Monday. This year Darling is under pressure to cut taxes for families and small businesses, and his statement will be as closely watched as any Budget-proper in recent memory.

They said:

CAMRA chief executive Mike Benner said: “Action to support pubs…is essential in order to prevent a bloodbath of pub closures following the traditionally busy Christmas trading period.

“This year's increase in beer tax has forced publicans to increase beer prices, making visiting the pub less affordable for hard pressed consumers.

He added: “To ensure pub going remains affordable the government must commit to a freeze on beer tax while they consider a reduced rate of tax on beer sold in pubs.”

We say:

Small community pubs are a proven cornerstone of towns and villages in the UK. Supermarkets are, through no fault of their own, crushing these pubs by selling alcohol at a loss to get customers through the door.

The government must step in to improve conditions for pubs, or be responsible for thousands of small business closures and potentially a steep rise in home-based boozing.

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By News Desk  on   Nov 21,2008

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Keywords

pubs    taxes    competition    Alistair Darling    pre-Budget    CAMRA   

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