Camra: 7,500 pubs will close by 2012

Up to 7,500 pubs could close by 2012 because of a tidal wave of beer tax hikes, cheap supermarket booze and the general economic downturn.

That's the stark warning from the Campaign for Real Ale (Camra) in a letter to the Chancellor ahead of Monday's pre-budget report.

Camra has called for:

• a reduction in VAT in order to assist pubs.

• an investigation into the feasibility of a reduced rate of tax on beer sold in pubs.

• a minimum price per unit of alcohol to prevent alcohol being sold at a loss in the off trade.

"Action to support pubs in the pre-budget report, next Monday, is essential in order to prevent a bloodbath of pub closures following the traditionally busy Christmas trading period.

"This year's increase in beer tax has forced publicans to increase beer prices, making visiting the pub less affordable for hard pressed consumers. To ensure pub going remains affordable the Government must commit to a freeze on beer tax while they consider a reduced rate of tax on beer sold in pubs."

He added: "Well-run community pubs help reduce alcohol related disorder and binge drinking by providing a safe, controlled and supervised environment for people to have fun and enjoy a drink. Pubs play a vital role in community life and provide a much valued sociable leisure activity for millions.'

"Despite overwhelming political and media concern supermarkets continue to push below cost alcohol deals. Current promotions include 18 bottles of premium lager being sold for £6.99 and 45 cans of lager for £18.

"These deals are utterly irresponsible and are ripping the heart out of community life by closing pubs. The Government must act now to end irresponsible alcohol price promotions that are encouraging alcohol misuse, undermining communities, ruining livelihoods and damaging peoples' social lives."