Small venues and pubs near major cities among most likely to have gone, according to ONS

This article is more than 1 year old

This article is more than 1 year old

More than a quarter of Britain’s pubs have closed their doors since the turn of the millennium, according to “shocking” official figures that have prompted fresh calls for the government to step in.

The Office for National Statistics (ONS) said the number of pubs had fallen from 52,500 in 2001 to 38,815, with landlords on the outskirts of major cities most likely to have called last orders for the final time.

Small independent pubs have borne the brunt of the decline, disappearing in droves as large commercial chain venues have grown in number.

The figures, from an ONS report titled Economies of Ale, provide the latest snapshot in the well-documented decline of an industry wrestling with problems including shifting consumer habits, tax rises and wage increases.

Tom Stainer, a spokesman for the real ale group Camra, said: “These shocking new figures show the huge loss that has been felt by communities up and down the country as beloved locals have closed down.”

He called on the government to “act now to save our pubs from extinction”.

Brigid Simmonds, the chief executive of the British Beer and Pub Association (BBPA), said: “Unless more is done to help alleviate the cost pressures pubs face … they will continue to close and jobs will be lost.”

She welcomed the freeze in beer duty announced in the budget last month, but pointed out that it rose by 42% between 2008 and 2013, a period in which beer sales fell by 24% and 5,000 pubs closed.

Beer accounts for seven in 10 alcoholic drinks sold in pubs, which struggle to avoid passing on tax increases to drinkers, while supermarkets that have a broader range of sales can keep costs down more easily.

The industry has highlighted the disproportionate impact of business rates on pubs, which cannot offset this cost through online sales.

While the chancellor, Philip Hammond, announced some tax relief for smaller pubs in the budget – a measure worth £60m according to the BBPA – the trade body estimated the industry collects 0.5% of high-street revenue but pays 2.8% of business rates.

The ONS report showed that pubs that are close to major urban areas but far from city centres are shutting at the fastest rate. Some areas now have less than half the number they did in 2001.

Newham was the worst-affected local authority in the country. The east London borough had 105 pubs in 2001, but now has 45.

Nearby Barking and Dagenham had a similar decline and now has the fewest pubs per head of any local authority in the country – less than one for every 10,000 people.

Areas close to Manchester such as Bolton and Rochdale experienced steep declines in pub numbers.

It was a similar story in the West Midlands areas of Sandwell, Dudley and Walsall, while Torfaen, near Newport, was the worst-affected place in Wales.

In Scotland, East Renfrewshire and East Ayrshire – both south of Glasgow – had the highest rate of closures, while pub numbers in Northern Ireland were down by one-third.

While suburban pubgoers have been deserting their locals, drinking establishments in tourist areas have thrived, according to the ONS figures, with numbers static or rising in Highland Scotland, Ceredigion in Wales and South Lakeland, around the Lake District.

While the overall number of pubs has fallen, the figures highlighted the ascendancy of commercial chains and a trend among pub companies to focus on larger venues.

The number of small pubs has slumped from 38,830 to 22,840 since 2001, while the number of medium and large ones has risen from 13,670 to 15,975.

The amount spent in those that are left has remained steady since the last recession – after taking inflation into account – suggesting the remaining pubs and bars have soaked up the custom from those that have closed.

The shift towards larger pubs, which need more staff, means the number of people employed in the industry is about 450,000 – roughly the same as in 2001.

Camra said any focus on steady jobs and revenue numbers masked the underlying impact of closures because it “fails to measure the loss of the benefits that local pubs bring to their communities”.

“Pubs play a unique role in offering a social environment to enjoy a drink with friends. They help combat isolation and loneliness, and help people feel connected to their community,” the group said.

Some pubs have been replaced by small brewery taprooms, as the number of craft beer producers has soared in the past decade. The Society of Independent Brewers said 15% of its 831 members have a taproom.