An MP's view of the pub trade...

North Devon MP Nick Harvey (who is my MP), is deputy chairman of the all-party parliamentary beer group. He told the North Devon Journal: “I am acutely aware that these are difficult times for the beer and pub trade. Most recently I and my colleagues have been lobbying the Government, with Early Day Motion 2159, protesting at the detrimental effect of supermarket alcohol prices.

“Pubs are closing at an alarming rate of five a day, compared with three a day last year, four a week the year before and two a week the year before that.

"Barnstaple is no exception to this trend with the recent closure of several longstanding establishments in Boutport Street and elsewhere.

“Tax hikes combined with the ban on smoking in public places and supermarkets selling beer as a significant lost leader, to the extent that it is cheaper than bottled water, have all had a negative impact on a struggling industry.

“While pubs have served a historic role, off-trade has always existed alongside, providing consumer freedom of choice. However, economically off-trade, thanks to the supermarkets, is now clearly a serious challenge with an annual turn over of about £13bn almost matching pub sales.

“I and the APBG will keep pressing the Treasury, Department of Communities and Local Government and Health regarding alcohol duty being a blunt instrument to deal with binge-drinking (the real target being supermarkets selling alcohol below cost price), the positive value of pubs to our communities and the need for regulation and licensing not to be so burdensome as to push yet more pubs out of business.”

There are 57,000 pubs and bars in the UK, contributing £18 billion to the economy and employing 650,000 people. The Business and Enterprise Committee is currently holding a new enquiry into the role of pub companies (the last was conducted in 2004), with submissions closing at the end of September.

According to Mr Harvey, the pub companies have failed to adopt previous recommendations that rents should be sustainable, tied tenants should not be worse off and that the upward-only rent reviews and gaming machine tie must cease.

The British Beer and Pub Association reported this week that beer sales between July and September fell by 7.2% compared to the same period in 2007.

Beer sales in pubs dropped 8.1% and sales in supermarkets fell 6%. BBPA chief executive Rob Hayward said: “Sinking beer sales and the record five pubs a day closing is a barometer of the UK economic climate. But any prudent diagnosis would also identify the specific impact of the budget’s 9% beer tax increase.”

This story appeared at the same time:

By Adam Wilshaw

GOOD local pubs which sell quality ale and decent food in a friendly environment will thrive despite the recession, according to a North Devon campaigner.

North Devon Campaign for Real Ale (CAMRA) member Terry Burrows said some pubs in the area were closing or bereft of custom, but the pubs he cherished most were popular and relatively profitable.

There are fears the traditional English local pub is facing an uncertain future, because of cultural and economic changes. Mr Burrows was one of a number of pub-goers, landlords, and brewery firms the Journal spoke to this week about the health of the pub trade in North Devon and Torridge.

Recent warnings about any widespread demise of our local pubs seem premature, given the responses we received. It can also be difficult to establish precisely why a pub closed: Was it because the rent was too high? Too few drinkers? Beer too expensive? No food? Too much food? No “smoking garden”?

Drinkers lured away by cheap supermarket beer? But there is little doubt our boozers are facing a number of problems, and the industry is having to work hard to entice in customers. North Devon MP Nick Harvey (Lib Dem) and Torridge MP Geoffrey Cox (Conservative) have both attacked the Government for increasing beer duty, for example.

Mr Burrows said: “From our experience, the good pubs, that offer what the community wants and are involved in the community, are thriving. It’s not all doom and gloom.” He said ever-increasing beer tax and cheap alcohol in supermarkets were harming our pubs. In addition, pubs which could not offer a smoking area were struggling to keep customers.

On the other hand, sales of cask ale continue to increase year-on-year. Pub landlords and landladies reported a mixed picture.

Jeff Sweet, from the Tavern in Diamond Street, Barnstaple, said his business was still busy at weekends with loyal regulars. And the landlord of a larger Barnstaple pub, who did not want to be named, said pubs had to increasingly offer “added extras”, such as live music, or they would go under. He too said many drinkers seemed to be switching to spirits which are, by alcohol volume, cheaper than ale.

Chris Franks, who sells beer wholesale from 37 independent breweries to pubs around North Devon and beyond, said: “Nothing has changed an awful lot, the ones who put effort in are doing all right, but no one is making a lot of money.” He also pointed out that North Devon and Torridge have a number of excellent breweries, including Country Life in Abbotsham and Barum in Barnstaple.

But Debbie Furnifer, landlady of popular local hostelry Marshalls, in Boutport Street, Barnstaple, said the pub had been quieter than usual in recent months. “I think people are scared to spend their money,” she said. “The regulars are still coming in.”

Few pubs are freehold businesses; the majority are owned by larger firms who lease the premises. Punch Taverns, which has a number of pubs in the area, said it was “passionate about safeguarding the future of the great British pub”. A spokesman told the Journal: “Pubs across the country face a challenging trading environment but we continue to work closely with our licensees in North Devon and across the country to help them find new ways of improving their business, developing their retail proposition and financial stability. This ranges from identifying new or improved food offers to developing other areas of their products, offers or service. Punch also has an industry leading support and training programme for licensees.

“Within our leased estate we have some great examples of pubs that have introduced new facilities, such as Post Office counters, which help them to become focal points of the communities they serve. The North Devonshire area has a small conurbation with limited road access and seasonal trade.

"The pubs have to continually strive to be the best they can be to attract customers and keep them coming back. Offering value for money and having an offer that suits the needs of the local market place is key to success. We have some fantastic outlets in the area which are really bucking the economic trend. The London Inn, Braunton, and the Rock Inn, Georgeham, both have great licensees at the helm who have developed an offer that is just right for their local market place. They consistently deliver excellent levels of customer service and are highly successful as a result.”

But some of the people pulling the pints were less optimistic.

Lee Sycamore, landlord of the Old Market Inn in Holsworthy, said: “With high street spending at its lowest for years, pubs closing down at a rate of five a day, and beer sales for the period of July to September down by 7%, a very grey picture has been drawn over the licensed trade. “The credit crunch has seemed to have hit us all. Speaking for ourselves, as a freehold pub, the trend on most sales seem to be up on last year so far. Beer and food sales have increased significantly, however wines and spirits have fallen dramatically.

"I can only put this down to customers being less extravagant at the end of the evening by cutting out on that last night cap, and saving a small amount by not having a bottle of wine with their meal, just one glass instead.”

But he said next year “could be worse than ever”.

He added: “Calls have gone out to the Government not to put the normal taxation on beers, wines and spirits next year in their budget. A public house is a vital hub for communities through both good and bad times.”

Arthur Scrine, landlord of the Patch and Parrot in Cooper Street, Bideford, said: “We have the same old crowd in here. We’ve got all the golden oldies and the credit crunch has not affected them coming in. The price of beer may have gone up, but we are still the cheapest pub in Bideford.”

Mark Birch has been the landlord of the Black Venus Inn, in Challacombe, on Exmoor, for the past four years and believes the current economic downturn had not had much effect on trade, although he had a stark warning.

He said: “It’s about a level par to last year although there are definitely not as many tourists around. People still have the same money to spend but they are just being a bit more careful with it.

"I don’t think the increase in beer duty will affect us at the moment but, if the Government insists on maintaining the current 4% levy, I think it will kill off the industry.”

Jon Hutchings, from the White Hart hotel in Holsworthy, said: “Generally the pub trade is down however I feel its all about innovation. What with the smoking ban last year and with cut price alcohol sales in supermarkets we are in a difficult time. “Late night weekend trade is down however it is also picking up again but this is due to new ideas and promoting events at weekends such as live music and DJs.

“We are at a time where you cannot expect business to just walk in the door. You have to go that little bit further to entice the customers in. Our food trade is on the up with particular attention focusing on local produce.”