Help the on-trade, Mr Blair – it's your duty

As 2001 gets under way, heralding the dawn of what many people believe is the real start of the new millennium, the licensed trade, trapped as it is in its own recent history, is no place for the faint-hearted.

If anyone has any lingering doubts about the decline in on-trade sales, all they need do is to visit a recycling collection point and see how busy it is. In my case, such observations are unavoidable as there is a bank of recycling bins more or less on my doorstep.

Day in and day out, all year round, we are forced to watch a steady stream of ex-customers disposing of their empties, twice or even three times each week.

The routine is invariably the same - they park up, give us a wave and ask us how we are doing before disposing of a bootload of empties which cover the whole spectrum of beer, wines and spirits. But that's just the tip of the iceberg - most people don't even bother to recycle.

Massively damaging though it is, the downturn in on-trade sales is no solo performance, but it does serve to highlight other injustices such as spiralling rents and business rates, which make an intolerable situation even worse.

Together, these three form an unholy trinity which will ultimately put an end to the pub as a concept and a tradition, unless steps are taken to reverse the process. Here are some suggested New Year's resolutions for the Prime Minister and his Government.

Cut duty rates

Rates of duty on excisable goods should be reduced to match those on mainland Europe, as a matter of urgency. This would not only produce more revenue for the Treasury but would also put an end to smuggling. As pubs are regulated, this would have a knock-on effect - under-age drinking would largely disappear, as would drinking in the streets.

Independent rent reviews

Rents on leased or tenanted public houses should be subject to scrutiny by a totally independent body and should be set at a level which enables the tenant or leaseholder to make a good living, commensurate to the hours and effort involved. Those tenants who do particularly well should be rewarded by a reduction in rent rather than an increase.

Revise the rating system

Business rates for rural and local pubs should be calculated on a bricks-and-mortar square footage and available amenities basis, rather than on the percentage of turnover basis in force at present, which effectively means that licensees have a second rent to pay. Managed houses and large town and city centre outlets should continue with the present system.

Make adverts honest

Advertisements which are designed to attract and recruit licensees should also be subject to regulations which would require those advertising to be scrupulously truthful and to disclose crucial facts relating to rent, rates, turnover, staffing levels and other overheads, as well as full details of the success, or otherwise, of previous licensees and the precise reason for their departures.

Make room for the little man

The number of outlets owned by pub estate operators should be restricted in order to prevent monopoly trading and make room for the smaller operator and the single outlet.

Foster tenant buyouts

Pub estate operators who are selling off all or part of their estates, for whatever reason, should be required in the first place to offer the freehold to the sitting tenant at a reduced price - one which would reflect the length of tenure and the amount of rent already paid. This would encourage the growth of owner/occupier free houses and put much-needed character and individuality back into our pubs.

It remains a constant source of bewilderment to me that the Government simply cannot get its head round the fact that, by levying a higher rate of duty on excisable goods than is levied on mainland Europe, it is losing colossal amounts of revenue.

The falling on-trade sales which are a direct result mean lower profits, which in turn mean less income tax for the Treasury and more unemployment. Add to that the fact that smuggling is a massive business now but produces no revenue whatsoever, and it is plain for all to see that parity on duty rates would yield more revenue rather than less.

After all is said and done, what does a high percentage of nothing amount to?

David Best is publican of the Bushell's Arms in Preston, Lancashire