Community hubs decline as Scots pubs closure rate tops UK list

THREE pubs are shutting in Scotland every week, industry leaders have warned, putting the future of the community pub at risk.

A report published today by the Campaign for Real Ale society (CAMRA) found that 1.3 per cent of public houses north of the Border – the highest proportion of anywhere in the UK – were forced to close their doors last year, leaving just over 5,000 open.

UK-wide, the weekly closure figure comes to 16 every week, as financial pressures force people to drink at home and landlords struggle to make ends meet.

Meanwhile, a separate report from independent think tank IPPR called on the government to take urgent steps to support pubs.

The groups claimed that pubs which demonstrated they acted as local community hubs should be given further business rates relief, while they also called for reforms to the planning law, to stop pubs being demolished without the need for planning permission.

“While high street, city centre venues are showing a degree of resistance in the current climate, both suburban and rural areas are under threat as wholesale pub closures deprive more local people of a community centre,” said Mike Benner, chief executive for CAMRA.

“Pubs are vital for social cohesion and cultural integration, and therefore the government must act swiftly to repair the damage inflicted upon local communities by offering genuine support for enterprising and hard-working licensees.”

He said that “free of tie pubs” – ie those which are not owned by a brewery – are better placed to weather difficult economic times by being able to offer greater beer choice and lower prices to their customers.

“This research also further underlines the major problems caused by many hard-working pub licensees being unable to buy their beer on the open market, restricted by punitive measures imposed by greedy pub companies,” he added.

Paul Waterson, chief executive of the Scottish Licensed Trade Association, said Scottish pubs had been hard hit by a change in the nation’s drinking culture.

“Certainly, the beginning of the end for many businesses was the introduction of the smoking ban in 2006,” he said. “It still has a serious impact. But the biggest change has been the irresponsibly low prices charged for alcohol by supermarkets.

“It has changed Scotland into a nation of take home drinkers.”

In Scotland, pubs with turnover of less than £12,750 can be eligible for business rates relief. But Mr Waterson said that historically high business rates for pubs had left many struggling. “It came in when pubs were thriving, but it is a real handicap for many at the moment,” he said.

The Institute for Public Policy Research (IPPR) report calculated that the “social value” of community pubs ranged from between £20,000 and £120,000 a year – calculated by assessing the amount generated for charity by the pubs, their role in organising community events, sports clubs and societies, and also the value of reducing social isolation.

Rick Muir, associate director of IPPR, said: “Government must stop using a ‘one size fits all’ approach to licensed premises, which is killing off our community pubs. Instead, responsible well-run community pubs should be encouraged and supported.”

He added: “Our research shows community pubs aren’t just places to drink but also places where people meet their neighbours; where local clubs hold meetings and events; and which support many important local services such as village post offices and general stores.”