Pubs are vital to UK economy and community, think tank report concludes

Pubs are vital to UK economy and community, think tank report concludes

“Pubs are perceived by people to be the most important social institution for promoting interactions between people from different walks of life,” explains the report’s author, Rick Muir.

Benefits of traditional pubs, which the IPPR’s Pubs and Places: the social value of community pubs report cautions are increasingly under threat from societal and global economic changes, far outweigh those of other establishments for a number of reasons, as Muir again summaries in the report:

“Pubs inject an average of £80,000 into their local economy each 
year. Pubs add more value to local economies than beer sold through shops and supermarkets, simply because they generate more jobs. Beer sold through pubs also generates more funding for the public purse than beer sold through the ‘off trade’.“

As bastions of British heritage that perform crucial business and community functions across the UK, the social cost and economic cost of permitting the decline to continue is not justifiable.

There could be a number of incentive undertaken by government and by publicans to stem the decline.

Given the importance of their social function, they could theoretically be extended financial perks reserved for third sector organisations, including grants and tax breaks, Muir explains.

“The relationship between the large pub companies and their 
tenants should be rebalanced,” writes Muir. “Pub companies with more than 500 pubs offering commercial FRI leases over a period of time to provide flexibility to lessees including a guest beer option and an option to become free of ‘tie’ accompanied by an open market rent review. There should be a single stronger and more comprehensive code of practice supported by an independently constituted adjudicator with the ability to provide redress to lessees where the code is breached. “

Alcohol could also be lowered, or at least structured in a way that would allow lucrative city centre bars to continue paying high rates of tax at the same time as allowing ailing yet vital community drinking establishments to pay a lower amount.

Fresh Business thinking

via pubs-for-sale.biz

Posted via email from UK Pubs For Sale And Development