The £1,100 'bad boy' tax
New restrictions on how licensees sell alcohol, which could come into force from July, will pile fresh pressures on pubs and dramatically accelerate closure rates.
That's the message from the trade as new cost details are released for the planned mandatory alcohol retailing code, which could cost community pubs £1,100 per year to comply. The total burden for the on and off-trades is £161m.
The shocking revelations come as new figures from the British Beer & Pub Association (BBPA) show pub closure rates have risen from five to six per day in the past six months.
Meanwhile, a new report from trade analysts Plimsoll says more than half of the biggest pub and bar operators are in financial danger.
The proposed code would see pubs forced to abide by strict rules on a range of issues. Minimum standards of training must be met. Wine must be available in 125ml glasses and spirits must be served in 25ml portions.
Costs vary per pub, but training costs alone would be £356 to £1,424 per year. Pubs that don't have 125ml wine glasses, for example, would need to spend an extra £34, based on 20 glasses at £1 each, plus updating price lists. Replacing Optics to serve 25ml portions would cost £214 per venue.
Pubs with particular disorder problems face even bigger costs. For instance, search measures to combat drug use would cost a huge £4,917 in man hours annually.
The Home Office justified its plans by saying the benefit to the country in terms of falling medical, policing and other costs would be £2.514bn over 10 years — but it will cost the on and off-trades £461m.
The BBPA estimates that 60,000 jobs could go if the code is introduced. Its new figures show that currently suburban community pubs are being hit the hardest, closing at a rate of 19 a week. Town-centre pubs are closing at eight per week and rural pubs 13 a week.
BBPA chief executive Rob Hayward said: "At this time of deepening recession and rising unemployment, the Government should be actively looking at ways to support the community asset of the pub.
"They should not be introducing legislation that will condemn more pubs to closure and put more people out of work."
At a debate on the plans in Parliament on Monday, All-Party Parliamentary Beer Group chairman John Grogan warned that the code could cost well-run community pubs £1,100 per year.
"There is a danger that the rate of pub closures could rapidly increase", he said.
The consultation into the code, which is included in the Crime & Policing Bill, is set to be released in February or March.
Jeremy Allen of licensing solicitors Poppleston Allen warned local authorities may interpret the act differently, causing operators to move from certain towns.
