Pub industry 'could be nationalised by 2020'

The pub industry could be “on its way to nationalisation by 2020” if anti-pubco campaigners continue to lobby for more statutory regulation, a research fellow at the Institute of Economic Affairs predicted.

Chris Snowden said the sector could be under state-ownership if the “pub preservation movement” continued to win victories in parliament like the market rent-only option. He defined “pub preservers” as the Campaign for Real Ale and members of the Parliamentary Save the Pub Group and Fair Deal for Your Local.

He said Government plans to strengthen legislation for pubs listed as assets of community value will lead to more derelict pubs — because the “real problem” was a lack of buyers — which might lead to the Government “buying pubs themselves”.

“Intervention upon intervention will lead to failure,” he said. “If we distort the market so much, there will be no market left and the only people who can look after pubs will be politicians. This is what I mean when I say by 2020 we could be on our way to some kind of state-ownership of pubs — if they are regulated in such a way they are not able to be run by viable businesses,” he said.

“Similar to national heritage sites — the physical building is preserved but the spirit of the pub is not.”

He said that if politicians were “genuinely committed” to the pub trade they “could and should halve alcohol duty and amend the smoking ban” so pubs can allow smoking in at least one room.

“What are the chances of that happening? Very little. We will have to endure the nauseating sight of MPs crying crocodile tears at the demise of pubs,” he said.