Small pubs 'closing due to high beer tax'

Date: 22nd July 2009

More than 50 pubs a week are closing due to high rates of beer tax and the impending increase in value added tax (VAT), it has been claimed.

Figures published by the British Beer and Pub Association (BBPA) reveal that more than seven pubs are having to close down each day.

Over the past year, around 24,000 jobs have been lost as a consequence of the closure of some 2,370 pubs.

David Long, chief executive of the BBPA, said: "The last two Budgets have seen a 20 per cent increase in beer tax, which alone has added more than £600 million to our tax bill. In addition, the government continues to press ahead with the Mandatory Code of Practice, which they say heap at least £30 million of extra red tape cost on pubs in the first year alone.

"While every other sector seems to receive a sympathetic ear and a taxpayer-funded handout from the government to tide them through the downturn, all we are getting is a deaf ear and a higher tax bill."