Calling time on pubs?

Shocking estimates that 1,300 pubs are under threat of closure were revealed by the Campaign for Real Ale (CAMRA) during its Community Pubs Week. The consumer organisation called on residents and local authorities to take a stand in a bid to preserve community pubs.

The figures showed an average of 56 pubs currently closing each month, with 80 per cent of these in urban areas.

While the decline of the rural pub has been well documented for some time, CAMRA has now turned its attention to the community local, which it says is disappearing in favour of private residential accommodation.

However, some have questioned the viability of preserving ailing businesses, believing that CAMRA's figures may not be as ominous for the pub trade as they initially appear.

The Association of Licensed Multiple Retailers (ALMR) is one body concerned by the findings, and has submitted proposals to ministers and MPs ahead of the Chancellor's annual Budget statement later this year.

As well as calling for a freeze on beer duty to offset the rising costs of doing business, the ALMR has demanded a reform of the licensing regime, to strip out unnecessary costs and administrative burdens.

ALMR chief executive, Nick Bish said: "These pubs are vital to healthy, safe and attractive communities. They deserve to be supported and encouraged, not suffocated by red tape and driven out of business by spiralling costs."

Temporary closures​

But are 1,300 pubs really under threat, and if so, are they all worth saving?

Iain Loe, CAMRA research and information manager, admits that the figure of 1,300 could be partly based on pubs that closed temporarily.

"It is always difficult to know whether a pub is definitely closed," he says. "These figures are extrapolated from reports from our local branches."

CAMRA's claims also make little mention of the many new pubs that are opening every year.

"It's true that new premises are opening up," concedes Iain. "But many of these are high street pubs catering mostly for the 18 to 25 age bracket. I don't think they are any substitute for community pubs."

However, changing consumer habits coupled with ongoing issues such as the smoking ban inevitably mean that some community pubs will fall by the wayside.

British Beer & Pub Association (BBPA) communications director Mark Hastings says that although there is an overall net loss of pubs (which the BBPA estimates at around eight per week), the industry needs to adjust to the way the market is moving.

"Pubs have been opening and closing for centuries," he says. "The pubs that are opening now are right for today's market. It's not a problem for the sector, it's a case of pubs developing for the 21st century consumer."

Bottom-end pubs​

John Longden, campaign director at pub preservation group Pub is the Hub (PITH), says the shift in concern towards urban pubs is reflected in the calls for help PITH is receiving, and the fact that a number of community pubs are not generating the profits to justify their existence. But he believes operators should forge closer links with property companies before selling.

"The industry is churning out a lot more bottom-end pubs, and unless they really have a role, the alternate use value will be more. A pub might be worth £100,000 but if it's sold as a home, it could be worth £1m," he says."But one needs to look at where pubs are closing. If you walk round East London, you see an awful lot of community pubs closing on street corners. I know affordable housing is needed, but a lot of pubs are not being turned into affordable housing, but expensive flats.

"Because of the separation between property companies and operators, people are not giving licensees any margin for strengthening their community."

The question of how licensees can fend off potential closure is not easy to answer, and Loe feels that input is required from all parties.

Use them or lose them​

"Even if people are living in an area where there's been lots of new property development, I think they might welcome a friendly local where they can meet people in their community," he says.

"It couldn't be argued that there aren't enough chimney pots in these communities, but the pubs are being run down because some of the larger pubcos are charging high rents and selling them off.

"We're encouraging people to visit their local. It's the same principle as with local shops - if you want them to survive you have to visit them."

Tony Payne, chief executive of the Federation of Licensed Victuallers' Associations, believes that licensees need to make sure they are getting the right advice at the right time.

"The legislation is coming thick and fast, and it's always the small business that has to pick up the tab," he says.

Concern about more pubs calling last orders isn't unfounded, and the net loss of eight per week is substantial enough to warrant our attention.

The demise of the urban pub will undoubtedly damage communities, but the fact remains that some licensees are struggling to protect their livelihoods in the wake of falling profits.

Although many of the new pubs are found on the high street, they reflect changes in society that are difficult to reverse, and at least prove it's not all doom and gloom for the trade.

Money talks, but if people truly care about preserving community pubs, they must all, customers included, accept their share of responsibility.