News

UK: Government pledges GBP4m to pub sector

Most popular

How US wholesalers view the next six months

Biden win focuses drinks on climate change

Heineken faces China distribution gap - comment

Why Aperol's crown is worth fighting over

Bang's explosive fall out with PepsiCo - comment

MORE

The UK Government has launched an aid programme for the struggling pub sector, backed by GBP4m (US$6m) in public funding.

Pubs minister John Healey today (19 March) announced a 12-point action plan to help community pubs.

Earlier this year, Prime Minister Gordon Brown asked Healey, who is also the housing minister, to examine how the Government could aid the pub sector. Around 40 pubs are closing down every week, according to the latest British Beer & Pub Association figures.

"Today’s measures are a much needed shot in the arm for publicans in these tough times," said Healey.

Up to GBP1m of the GBP4m in funding will be given to improve business advice available at the 'Pub is a Hub' group, a support service for community pubs.

Around GBP3.3m will help to empower communities to buy into struggling local pubs. It is anticipated that the funding will be matched by private sector investment and could be enough to fund the takeover of 50 community pubs over the next three years.

Councils, meanwhile, will be given new powers to prevent pubs from being demolished, the Government said.

Healey said that ministers are also in favour of relaxing the so-called 'beer tie' system, which forces pubs to source beer from their parent pub company. New industry rules, agreed with Government, will mean that pubs can buy in local guest ales, outside of their beer tie.

"If the industry does not fulfil its promise [on beer ties], Government will legislate to open up the market," said Healey.

He added that there will be three independent studies "to identify where further support can be offered and to ensure the long-term viability of pubs".

Despite the measures, there has been no assurance from the Government on duty tax for alcoholic drinks, which is set to rise by 2% above inflation in the 2010 Budget - to be announced next week.

Drinks trade bodies have called for a freeze on duty, arguing that more rises will hit jobs, as well as Government tax revenue. Tax on beer has risen by 20% in the last two years.

//i4.progressivedigitalmedia.com/1/3657106-532x800.jpg

Sectors: Beer & cider

Related Content

UK on-premise to be

UK on-premise to be "lost in days" following Government coronavirus advice...

"What we have right now is an unsustainable trading model"- just-drinks speaks to Emma McClarkin, ch...

UK alcohol duties frozen in pub-friendly Budget - reaction

UK alcohol duties frozen in pub-friendly Budget - reaction...

"We've got to keep our business running" - UK brewers react to coronavirus on-premise impact...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?