Call for tax breaks to halt pub closures
Eighteen pubs close every week according to new figures, prompting fears that they are being driven out of business by heavy taxes.
The Campaign for Real Ale (Camra) has called for an urgent tax cut to help pubs survive in the wake of the new figures, which show an increase in the closure rate compared to last year.
The consumer group said taxation now accounts for a third of the price of every pint sold in a pub.
It said a triple whammy of one of the highest rates of beer duty in Europe, rapidly rising business rates and VAT was making it hard for pubs to survive.
The new figures show that 460 pubs closed from July to December last year, including 35 in the West Midlands. The previous year 455 pubs closed over the same period.
Camra is urging the government to implement a fundamental review of the tax system and says Britain's departure from the European Union provides new opportunities to support pubs, such as the potential for lower rates of tax for draught beer sold in pubs.
Jon Cornes, who keeps the Bottle & Glass at Picklescott, near Church Stretton, said business rates had the biggest impact on business.
"We have had a re-evaluation, which has increased the business rates, but they haven't upped the threshold for relief at the same time," he said.
"I don't think you get drinkers like you used to, we're four miles down a country road and the only way you can get to us is by car.
"For us, the biggest factor is the state of the lanes, people don't want to get their cars dirty."
Colin Valentine, Camra's national chairman said: "Pubs are now facing a crippling tax burden, exacerbated by the perfect storm of the last business rates revaluation and a high level of beer duty. From these new pub closure figures, it is clear that a fundamental change is needed if the British pub is to survive for future generations.
"As Britain prepares to leave the European Union, the government has a unique opportunity to update the tax system to better support pubs, which are a bastion of British culture and at the heart of communities across the country.
"We can now look further afield for a new tax deal for the sector. This could include implementing the Australian model of having a lower rate of duty for beer sold in pubs, radically changing the business rates system, or charging a lower rate of VAT for pubs or, even better, all three.
"Millions of dedicated pubgoers are looking to the government to act now to secure the future of the great British pub. We're now challenging the government to be the most pro-pub in history by seizing this opportunity."
The closures data was compiled by Camra's WhatPub online pub guide, which covers about 47,500 pubs in the UK.
