UKIP calls for investigation into pub trade

A Royal Commission to investigate the pub industry is being recommended by the UK Independence Party.

The proposal has been put forward by the party's deputy leader, Paul Nuttall, who has produced an in-depth report entitled - 'Last Orders? The decline of the Great British pub'.

"The Royal Commission would investigate the pricing structures used by breweries through pubcos and in their captive markets for bulk wholesale goods and the cost of sales to supermarkets," explained Nuttall, MEP for the North West.

"This structure makes the cost of wholesale prices, from tied sales from a pubco or even independent wholesalers, more expensive than some retail beer prices in supermarkets.

"UKIP will insist on reduced differentials and a fairer balance in beer pricing between on and off-trade beer sales," he said.

"I have spent a considerable time investigating the reasons for the decline of the great British pub for this report and with pubs closing at a stupendous rate of 28 a week it is vital that urgent action is taken.

"In 2009 a total of 2,365 pubs closed across the country which led to the loss of more than 10,000 jobs in local communities, in turn costing the government an extra £1.53m a week in job seekers allowance.

"Pubs are more than just private businesses selling alcohol: very many pubs play an important role at the heart of their local communities. They provide a valuable meeting place and inject an average of £80,000 a year into their local economy.

"Beer sold through pubs also generates more funding for the public purse than beer sold through the off-trade."

He also called for a change in VAT rules so that pubs can compete with supermarkets and claimed "It is imperative that the government takes on board the concerns of the industry with regard to the smoking ban, tied beer prices, duty and tax."

UKIP revealed it would amend the smoking ban to allow pub landlords and club managers to provide contained and ventilated smoking rooms.