Pubs at risk after tax hike

Research shows that 4 pubs are going out of business every day due to increased costs, the smoking ban and the consumer slowdown.

Now, a brewery is warning that 8,000 pubs could also go out of business due to the Budget increase in alcohol duties.

Shepherd Neame, the real ale brewer, warned that pubs will be forced out of business after Chancellor Alistair Darling’s tax raid which could result in 80,000 job losses in the industry.

Shepherd Neame is Britain’s oldest brewer, has 370 pubs and produces ales such as Spitfire, Master Brew, Early Bird Spring Hop and Bishops Finger.

Mr Neame of Shepherd Neame said there was ‘resentment‘ in the pub trade towards the Government, who said there is public concern over binge-drinking so tax on alcohol was hiked 6%.

At a seminar organised by the All-Party Parliamentary Beer Group, Mr Neame said it’s too late to save some pubs and the implication is profound. When history looks back, it will remember 2 things, the needless loss of pubs and the arrogance and thoughtlessness of the Government, added Mr Neame.

Brewer and pub operator Marstons has bought Refresh, owner of the Wychwood Brewery in Witney, Oxfordshire. Refresh produces premium bottled ales to supermarkets and its beers include the fast-growing Hobgoblin, Fiddler’s Elbow and Brakspear.

Ralph Findlay, chief executive at Marstons, said he was cautious about this year’s prospects. The recent increase in alcohol duty adds to the pressures on tenants and free trade operators in an already challenging trading environment.

Marstons’ Pedigree ale is the official beer of England’s cricket team.

Story link: Pubs at risk after tax hike