By Andrew Cleary
Jan. 19 (Bloomberg) -- U.K. pubs closed at a record rate of 39 a week in the second half of last year as the economy slid toward recession and an increase in beer tax hurt profitability, the British Beer & Pub Association said today.
Pub closures gained pace from 36 a week in the first six months of 2008, taking industry job losses to 44,000 “in the last couple of years,” the BBPA said in an e-mailed statement.
In total, 1,973 pubs shut in 2008, the statement shows. Pubs in suburban and rural locations handed back their keys at a faster rate than those in town centers, the BBPA said.
The industry faces 300 million pounds ($445 million) a year in extra costs if legislation is passed to tighten restrictions on the sale of alcohol, the BPPA said, citing a government report on the impact of the bill, which is being debated today.
“Government is piling further pressure on pubs by escalating the regulatory and tax burden,” Rob Hayward, chief executive officer of the BPPA, said in the statement. “Pub closures are a clear demonstration of the extreme financial and economic pressures facing the sector.”
Alcohol-related crime and health issues cost the U.K. between 12 billion pounds and 18 billion pounds annually, according to the Home Office’s Impact Assessment of a Code of Practice for the Alcohol Industry, dated Nov. 21.
The government tax on beer was raised by 17 percent in 2008.
To contact the reporter on this story: Andrew Cleary in London at acleary7@bloomberg.net.
Last Updated: January 18, 2009 19:01 EST
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