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Sticking to the facts on pub closure numbers

03/11/11


The BBPA has moved to set the record straight over conflicting analysis in recent days of UK pub closure figures. It is absolutely clear from CGA data, says the BBPA, that free trade pubs have been closing at a much faster rate that tenanted and leased pubs in recent years. The BBPA has published its full analysis of the data on its website, today available from the link below.


From January 2009 to June this year, CGA figures show 3,444 free trade pubs closed, compared with 2,239 tenanted and leased pubs over the same period. As the free trade sector has considerably fewer pubs, their closure rate over the period was almost double that of the tenanted and leased sector, at 16 per cent, as compared with 8 per cent. Taking new openings into account, there was a 9 per cent net reduction in free houses, compared with a 6 per cent reduction in tenanted and leased.


Free trade closures are higher, despite the considerable numbers of pubs being sold into the free trade from the tenanted sector. The reason that there are more free-trade pubs now than there were at the start of 2009 is that companies have sold tenanted/leased pubs to private owners, where this has been deemed appropriate.


BBPA Chief Executive Brigid Simmonds comments:


“The pub market is very complex, with transfers of ownership and openings and closures happening all the time. However, the bottom line, as the data clearly shows, is that more free-trade pubs have closed than tenanted and leased. We are publishing the full data on our website today, so that everyone can see the full picture.


“Tenanted and leased pubs benefit from considerable support from pub companies, with some £265 million invested in rent concessions, marketing, trade discounts, capital investment and training for their tenants in 2010 alone. In addition, rents have reduced in real terms by 20 per cent since 2008.


“Pub closures are caused by a huge range of issues - the greatest of which we can influence are undoubtedly punitive rates of taxation and the high cost of regulation. And though there is still some way to go to halt the decline, we should all welcome that the latest figures show that the net closure rate has fallen significantly.”


Notes to editors:

A story in the Publican’s Morning Advertiser on 27 October (page 5) contains a quote: “3,218 tied pubs had closed since December 2008, compared to 425 free-of tie pubs” These figures appear to include transfers between sectors: The CGA data shows that 1,334 pubs moved out of the tenanted/leased sector, and 1,711 pubs moved into the free trade sector since January 2009.


Resources

» CGA Pub Closure Data - BBPA Analysis



Tags:

Community, Employment, Pubs


For further information contact:

Neil Williams
Head of Media
nwilliams@beerandpub.com
Tel: 020 7627 9156 / 07974 249 779


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