An average of four British pubs is closing every day.

Britain’s second biggest pub group Enterprise Inns has said trade amongst its 7,700 pubs is suffering at the hands of the credit crunch today (22 July).

The company revealed it has had to give growing amounts of assistance to licensees struggling to cope with the credit crisis.

The pub chain attributed the increased need for help to the smoking ban and the fact consumers have tightened their belts amid declining financial confidence.

Enterprise Inns said that, overall, food sales were up, however it had mainly suffered through declining beer sales. According to media reports, it is thought beer sales across the whole of the hospitality sector could have fallen by as much as double digits for the period April-June.

The group’s announcement follows research by the British Beer & Pub Association (BBPA) which reveals that British pubs have been closing at a rate of 27 a week over the past year.

The closure rate – which equals nearly four pubs a day – is seven times faster than in 2006 and 14 times faster than in 2005.

According to BBPA, 1,409 pubs closed during 2007. Pub numbers were down 216 in 2006 – equating to four a week, compared with a decline of 102 in 2005 – two a week.

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.”

For more information, visit BBPA’s website: www.beerandpub.com

By Natasha Piscitelli