Neame: 8,000 pubs at risk after Budget

Shepherd Neame boss Jonathan Neame has slammed the "arrogance"​ and "thoughtlesness"​ of the Government and warned 8,000 pubs could close.

Neame (pictured​) said that the decision to raise duty by 4p on a pint and then 2% above inflation for the next four years represented an end to evidence based policy.

He believes the rise could see 8,000 pubs close with the loss of 80,000 jobs.

"It [the Budget] will accelerate the shift from on to off trade consumption.

"We are now looking for pub lifelines."

He added: "There is visceral resentment amongst licensees and customers.​

"The Government would do well to realise that there is one million people in this industry - that's one million votes."

Neame said that the price differential between the on and off-trade - currently at four to one - must be reduced and the industry must now consider schemes such as minimum pricing or a different duty rate for the off-trade.

"When history looks back, two things will be remembered - the needless loss of pubs and the arrogance and thoughtlesness of this uncaring Government."​

Minimum pricing​

Neame was speaking at an All Party Parliamentary Beer Group meeting to learn how Social Refernce Pricing (SRP), a form of minimum pricing, works in Canada.

In Canada, 10 of the 12 provinces operate an SRP - six just for the off-trade.

"Its primary purpose is so you don't get excessive discounting and irresponsible consumption and youth drinking,"​ said Jeff Newton, president of Canada's National Brewers Association.

If retailers breach the minimum price set they can face a fine or ultimately lose their licence.

Newton said the scheme had withstood scrutiny under trade and competition laws.

But he warned: "It is not a cut, drag and paste solution. It is a concept which has worked as part of a wider framework."​