Recession kills business at British pubs

LONDON -- The recession is killing British pubs at an accelerating rate, an average of 52 every week in the first half of the year, an industry group said Wednesday.

Pub closures have put 24,000 people out of work in the past year, the British Beer & Pub Association said, citing figures compiled by CGA Strategy, which tracks the drinks industry. That compares to an average of 39 per week in the second half of last year.

Ever-increasing taxes on beer are contributing to the pain, the association said.

"The recession is proving extremely tough for Britain's pubs," said BBPA chief executive David Long.

"However, those economic pressures have been made much worse by a government that has continued to pile on tax and regulatory burdens. The last two budgets have seen a 20% increase in beer tax, which alone has added more than 600 million pounds (nearly $1 billion) to our tax bill," he said

"Government now needs to listen to the pub sector in the same way it listens to other sectors suffering this level of job losses," Long added.

The association said that pubs which serve food are weathering the recession best, with an average of one closure a week. All the other closures involve pubs that concentrate on drinks.

Pub keepers have been complaining for some time about legislation which has banned smoking and of competition from cut-price beers in supermarkets.