GMB points finger at pubcos for falling beer sales

High rents and beer prices have been blamed for a drop in pub sales by trade union GMB.

According to GMB analysis of government and British Beer & Pub Association (BBPA) figures, consumption in the on-trade in 2009 was 24.5 per cent lower than in 2002.

It puts this change down to the rents and tied beer prices pubcos charge tenants and lessees.

Paul Kenny, GMB general secretary, said: "Britain's community pubs are on a life-support machine and if the poison of high rents and artificially inflated prices is not removed it is not an exaggeration to say that these pubs will disappear and thousands of jobs will disappear as well."

He added: "BBPA keep banging on about taxes on alcohol but fail to point out that their pubs have to charge an extra pound a pint simply to pay the above market rents."

But Mark Hastings, director of communications at the BBPA, said beer tax was the "principal cause" of escalating beer prices.

"It's good of the GMB to join us in publicising this drop, which we've been highlighting for a number of years.

"Given their obvious belief in our stats and facts, we now look forward to them joining our campaign on beer tax. The tie has been ever-present throughout the ups and downs of beer market.

"What's new in recent years is the recession, rafts of red-tape and huge increases in beer tax - a £760m tax rise in the last two years alone."