27 pubs a week closing in the UK

March 6, 2008: Pubs are closing at an alarming rate of 27 a week — that's an average of just under four a day — according to new figures from the British Beer and Pubs Association (BBPA).

The figures show that 1,409 premises shut up shop permanently in 2007 — a sharp acceleration on previous years.

Rob Hayward, chief executive of the BBPA, said: “Britain’s pubs are grappling with spiralling costs, sinking sales, fragile consumer confidence and the impact of the smoking ban.

"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."

Urban pubs have been hardest hit, with 2% closing in the last six months. Pubs without the room to provide an attractive outside area for smokers, and those that are not heavily focused on food sales, have faced particular difficulties.

Beer sales in pubs — the backbone of the trade — are now at their lowest level since the Great Depression of the 1930s. This is all the more reason to freeze the duty on beer in this year’s Budget, says the BBPA.

Today’s pubs are selling 14 million fewer pints a day than they did when sales were at their peak in 1979. In addition, rising costs in brewing, food and energy, have hit the trade hard.

Total alcohol sales in pubs have fallen by around 6% in the last 12 months. While there has been a surge in food sales, profit margins are being squeezed because of the additional costs associated with selling food.

“Some commentators would have us believe that the pub trade has faced a bonanza following the introduction of the Licensing Act in 2005,” said Mr 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.

"A vital part of the British economy and social life is under the most severe strain it has faced for decades. Increasing these pressure and costs will only result in the loss of more of Britain’s much loved community pubs.”