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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.

Stay informed for just £1! *

Subscribe to Just Drinks for unbiased coverage of the global drinks industry, offering insights into the corporate strategies of beverage manufacturers and brands worldwide.


What’s included in your subscription:
  • Unlimited access to Just Drinks content including daily global news, in-depth analysis, and interviews with C-suite executives
  • Unbeatable coverage of categories from beer, wine and spirits to soft drinks and hot beverages
  • Unrivalled drinks industry comment from leading sector specialists

Ready to stay informed? Subscribe now and gain access to exclusive content.

Subscribe

Have a subscription? Sign in

For further details on subscribing, click here. Need multi-user access? Explore our corporate subscriptions now.

*After your 1-month trial, your subscription will continue at £315 per year.