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British pub closures rise to 52 a week

12:08pm GMT, Wednesday, 22 July 2009

British pubs are closing at a rate of 52 a week as they struggle to stay afloat during the recession. British pubs are closing at a rate of 52 a week as they struggle to stay afloat during the recession.

According to new figures released by the British Beer & Pub Association (BBPA), pubs in Britain closed at a record rate of 52 a week in the first half of 2009.

The figure is up a third from the rate of 39 pubs a week in the first six months of last year.

Over the last 12 months, 2,377 pubs have closed down, resulting in 24,000 job losses. In the three years to 2009, a total of 5,134 pubs have closed and there are now 53,466 pubs in Britain.

The rate of closures is the fastest since records began in 1990.

Community pubs are being hit the hardest with 40 closing down each week. Research also shows that pubs that provide food are proving more resilient in the economic downturn.

Pubs and bars are set to face another setback in light of the economic crisis when beer tax increases in the near future. VAT will increase in January 2010 and alcohol duty is to rise a further 2% above inflation in March.

David Long, BBPA Chief Executive, said: “The recession is proving extremely tough for Britain’s pubs. However, those economic pressures have been made much worse by a Government that has continued to pile on tax and regulatory burdens.”

The BBPA also states the government is turning a blind eye to the plight of the British pub despite the fact that the closures have cost the Treasury £254 million in lost taxes in the last year.

Job losses in this sector are costing the government an additional £1.53m a week in unemployment benefits.

Mr Long added: “Closing pubs are not only a loss to communities, but a loss to the Treasury. Government should look at valuing and rewarding pubs as community assets.

“Not only would this have social policy benefits by supporting a hub of community cohesion, but financial policy benefits in terms of tax revenues, particularly at a time when the public purse is stretched.”

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Business, Finance, Hospitality, Leisure, Lifestyle & Culture
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