New BBPA pub closure figures show 'damaging' MRO amendment 'not needed'

The British Beer & Pub Association said this demonstrated that statutory intervention is not needed and “would damage the trade and risk a return to far higher pub closure rates”.

MPs are set to vote today in Parliament on an amendment to introduce a market rent only option for tied tenants. The BBPA has warned that – if passed into law – the amendment would effectively “break the beer tie”.

Analysis​

The figures, which cover the year to September 2014, were prepared from a survey of BBPA members operating nearly one-third of all pubs and studied by analysts Oxford Economics. 

Whilst no analysis of the independent pub sector was undertaken, as noted in the report, the BBPA said the figures correspond with its own analysis of the Valuation Office Agency ratings database which suggests a closure rate of around 13 per week for the whole sector based on the number of outlets classified as pubs in the database compared to a year ago.

Recovery​

Brigid Simmonds, BBPA chief executive, said: “These figures reflect the increasing confidence we are now seeing in the pub sector, very much supported by Government action on beer duty, business rates and other measures introduced. However, we are now facing very important legislation which could affect Britain’s pubs for decades to come, and it is vital this recovery is not put at risk.

“MPs who are being urged to take action that will slow the rate of pub closures need to be aware of these figures, and consider that the Government’s own research shows that up to 1,400 pubs would close, with 7,000 job losses if proposals being supported by some MPs to end the beer tie are passed into law via the Small Business Bill.”

Download the full report below:

Summary of BBPA analysis of VOA ratings database​