Pub closure rate has not peaked, warns Neame

Calls for the government to ditch the duty escalator and bring in fairer taxation on draught beer reached fever pitch today at a lively meeting in Parliament.

MPs, peers and pub trade figures gathered to voice their concerns about the crippling impact further tax increases - on top of the 17 per cent rise last year - would have on the pub sector.

In front of a packed committee room, Jonathan Neame, chief executive of Shepherd Neame, warned the rate of pubs closures could still increase. "If anyone thinks this will plateau at six a day, they are wrong," he said.

He added: "Twenty-five per cent of pub stock could close, unless something is done."

Neame also noted that 700 jobs were being lost a fortnight in the sector.

For other industries, Neame argued, the government "reached for the chequebook", but for pubs, Labour "reached for the revolver".

He also claimed £3.3bn amount of economic activity would be lost by 2012 if the situation continued.

Neame said it would be a "huge opportunity missed" if the government did not re-think its position on alcohol duty, including scrapping the rise brought in with last October's mini Budget. "Give us a chance," he concluded.

Mike Benner, chief executive of the Campaign for Real Ale, told the meeting that well-run community pubs were a "useful way to build social cohesion".

"You stand at a pub bar and prince and pauper are equal," he said. Benner also pointed to figures suggesting that 53,000 jobs could be lost in the trade in the next five years.

Keith Bott, president of the Society of Independent Brewers, called for a "fairer tax system that actively supports our national drink".

Later licensee Keith Bannister said it was people smuggling drinks into pubs, previously bought in the off-trade, which he referred to as "free-loading", that was damaging his trade.