GMB: pubcos to blame for falling drink sales

Pubs are on a "life support machine" because they are selling 25% less drinks now than in 2002 — and the GMB is blaming high pubco rents and the beer tie for pricing consumers out of pubs.

Using figures from the British Beer and Pub Association (BBPA) Statistical Handbook and Revenue and Customs, the trade union has highlighted that off-trade sales are now 12.3% higher than in 2002 but pub sales have dipped 24.5%.

But there has also been an overall 3.8% decline in alcohol consumption since 2002.

The GMB believes that consumers are forced to pay over £1 more for a pint in a tied pub because of the beer tie and the rent charged.

"Britain's community pubs are on a life support machine and if the poison of high rents and artificially inflated prices is not removed it is not an exaggeration to say that these pubs will disappear and thousands of jobs will disappear as well," said Paul Kenny, GMB general secretary.

"To the question 'does a higher price for alcohol lead to a fall in consumption?' the answer is a resounding 'yes'.

"This GMB analysis shows that Britain's community pubs are being killed off as drinkers walk away from the high prices the pubs are forced to charge by their pubco owners."

Kenny said the BBPA was wrong to lobby the Government for lower taxes on beer, when the prices its members charge tenants were really to blame for pub closures.

"BBPA keep banging on about taxes on alcohol but fail to point out that their pubs have to charge an extra pound a pint simply to pay the above market rents," he said.

"Politicians and regulators have done absolutely nothing to help the tied tenants who have had to turn to GMB to try to get a remedy."

Welcome aboard​

BBPA director of communications Mark Hastings said: "It's good of the GMB to join us in publicising this drop, which we've been highlighting for a number of years. Given their obvious belief in our stats and facts, we now look forward to them joining our campaign on beer tax.

"The tie has been ever-present throughout the ups and downs of beer market. What's new in recent years is the recession, rafts of red-tape and huge increases in beer tax — a £760m tax rise in the last two years alone.

"This is the principal cause of escalating beer prices and pressure on pubs, regardless of whether they are tenanted. leased, managed or free trade."

GMB lead organiser and Punch lessee Hayley Brennan said she she would be "pleading" with tied tenants to take action at a series of meetings this week in Leeds, Oxford and Kent.

"Unless the tied tenants themselves take action and take it soon the community pubs will disappear," she said.