The decline of British pubs from 75,000 to 45,000 resulted from a series of interconnected policy decisions: the 1989 Beer Orders allowed property companies to buy pubs without breaking the brewery monopoly, the 2006-2007 smoking ban eliminated customers from working-class pubs, supermarket competition undercut prices through below-cost sales, and the beer duty escalator increased taxes by over 40% between 2008-2013. These factors combined to destroy the traditional community pub model, replacing it with commercial establishments that prioritize profit over community service.
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Britain Had the Perfect Pub... Until One Decision Ruined ItAdded:
It's a Friday evening and you can hear the pub before you reach the door.
Voices, glasses, someone laughing too loud near the bar. You push through and the smell hits you. Beer, cigarettes, furniture polish and the warmth of a room that's been full of people since half five. The landlord sees you come in and he's already reaching for your glass. He knows what you drink.
>> [music] >> He's known since 1968.
Your pint is half pulled before you've said a word. You take your spot, the one near the dartboard. Tuesday is darts night, Thursday is dominoes. Friday is just Friday and everybody's here because it's the end of the week and this is where you go. That pub had rooms. The public bar had bare floors, a dartboard on the wall and blokes still in their work clothes. Pints were a penny or two cheaper in there. The saloon next door was carpeted, a bit smarter and that's where you took your wife on a Saturday.
And then there was the snug, a tiny room with its own hatch to the bar and frosted glass so nobody could see in.
Old Harry had been sat in that corner since 1953 and God help anyone who took his seat.
Mild was the working man's drink, lower in alcohol, sweeter and cheap. In the 50s, it made up nearly half of all draught beer sold in England. Bitter was what most people drank, pulled by hand pump and it tasted different depending on where you were. A pint in Birmingham was nothing like one in Yorkshire. And then there was the round. You bought a round, you stayed. Someone asked what you were having and you were in for the night. It kept people together in a way nobody thought about until it was gone.
At its peak, Britain had around 75,000 pubs. They were the place you heard about a job, found a plumber or learned about a funeral. Engagements were celebrated there and wakes were held there. The landlord lived upstairs, too.
He knew everyone on the street. He'd lend you a few quid if you were short and have a quiet word if you needed one.
He was just the landlord, but he knew more about what was going on than anyone. Today, around 30,000 of those pubs are gone, more than one in three, and they didn't just fade away. They were taken apart by a series of decisions made by people who never had to live with the results. To understand how, we need to go back because the damage started well before anyone noticed. Through the '60s and '70s, the big breweries started knocking through walls. Open plan was more efficient. One big room instead of four small ones meant fewer staff and more customers.
But, every wall they removed took something with it. The snugs went, the privacy went, and the quiet corners where people talked properly went with them. Before we go on, this video is sponsored by World of Warships, and I think you'll actually enjoy this one. In May 1941, the German battleship Bismarck sailed into the North Atlantic to attack Allied shipping. The Royal Navy sent HMS Hood to intercept her. In the battle that followed, Hood was hit in her ammunition magazine and sank [music] in 3 minutes.
Over 1,400 men died. Only three survived. Churchill ordered every available warship to hunt Bismarck down.
What followed was the biggest naval pursuit of the war. Battleships, cruisers, destroyers, aircraft carriers, all sent after one ship. Days later, the Royal Navy found her and finished the Bismarck. World of Warships is a free-to-play game with over 850 historically accurate [music] ships. And right now, they're running a hunt for Bismarck event where you can command Bismarck, HMS Prince of Wales, and other [music] ships from the pursuit. If you enjoy the history on this channel, you'll feel right at home. There's a link in the description with a bonus code for new and existing players, so have a look. Now, back to what the breweries were doing. While they were knocking through walls, they were also quietly replacing cask ales with keg beers that were easier to store, easier to serve, and nationally branded. The problem was they tasted of almost nothing. A pint in Birmingham used to taste nothing like one in Yorkshire, and that was the point. The beer came from somewhere. The new stuff could have come from anywhere. In March 1971, four journalists sat in a pub on the Kerry coast in Ireland and decided something had to be done. They founded what became the Campaign for Real Ale. The big six brewers controlled 75% of all beer production and owned most of the pubs in the country through a system called the tie, where the brewery owned the building and the landlord could only sell that brewery's beer. It was a monopoly, but at least the landlord serving your pint worked for someone who actually made the stuff. Then came the decision that changed everything. In March 1989, the Monopolies and Mergers Commission published its report. It found the big six brewers ran a complex monopoly. They brewed the beer, owned the pubs, and controlled what you could drink in them. The government decided to [music] act. In December 1989, Business Secretary Lord Young signed the Beer Orders. Any brewer owning more than 2,000 pubs had to sell or release half the excess. That meant roughly 11,000 pubs put up for sale in two years. The intention was good, break up the monopoly, give landlords more choice, give drinkers more options. It was a genuine attempt to fix something broken.
What actually happened was a disaster.
The beer orders applied only to brewers.
They said nothing about non-brewing companies buying those pubs and keeping the tie in place. Nobody had thought of that and it created a new kind of owner that the pub had never seen before.
Property companies moved in. Punch Taverns, Enterprise Inns, Admiral Taverns. They bought the pub estates wholesale. They weren't brewers and they didn't make beer or care about beer.
They were property companies and what they cared about was squeezing as much money as possible out of every pub they owned. And because they weren't brewers, the beer orders simply didn't apply to them. By 2004, Punch held over 8,000 pubs. Enterprise held nearly 9,000.
Between just two companies, they controlled more pubs than the entire Big Six had when the government stepped in.
The beer orders hadn't fixed the problem. They'd made it worse. The old breweries at least cared about what was in the glass. These new owners only cared about what came out of the tenant's pocket. Here is what that looked like. A keg of Foster's that cost 84 pounds wholesale was sold to the pub landlord for 150 pounds. [music] The same beer, the same barrel, nearly double the price and the landlord had no choice. Under the tie, >> [music] >> you could only buy from the company that owned your pub. You were locked in. They even fitted electronic monitors into the cellar beer lines, devices called Brewlines that tracked every drop that passed from keg to tap. If a landlord bought a single barrel from a local brewery to save a few pounds or give his regulars something different, the system flagged it. Fines followed, then eviction threats. The landlord was being watched in his own cellar. Half of all pub landlords tied to these companies earned less than 15,000 pounds a year.
Many earned less than the minimum wage while working 80 or 90-hour weeks. Most lived above the pub in tied accommodation. When the lease failed, they lost not just their business, but their home. Both Punch and Enterprise had borrowed billions against their pub estates, assuming rents would keep rising and tenants would keep paying. As much as 600 million pounds a year was being pulled out of British pubs and paid to investors and hedge funds. One MP, Greg Mulholland, a Liberal Democrat who spent years fighting this, called it out on the floor of the House of Commons. He described it as slash and burn. And then, into an industry already being stripped for parts, came the smoking ban. Scotland introduced it on the 26th of March, 2006.
England followed on the 1st of July, 2007.
The effect was instant. Before the ban, pubs had been closing at a steady rate of a few hundred a year. In 2006, it was 216.
In 2007, it was 1,409.
Beer sales dropped 7% that year to their lowest level since the 1930s.
The closure rate didn't just increase, it multiplied by four, and that was before the recession even started. The ban was the right decision for public health. It improved the lives of every person who worked behind a bar, but the cost landed on the pubs that could least it. The community local with no food menu, no beer garden, and a regular crowd of older men who smoked. Those pubs lost customers overnight and never got them back. Wealthier pubs with kitchens and outdoor space adapted. The ones that served working people did not, and nobody offered them any help. When the 2008 financial crisis hit, the pubco model collapsed entirely. Enterprise and Punch had to sell pubs to pay their debts. Between 2008 and 2012, the two companies got rid of more than 5,000 pubs. And when they needed to sell quickly, pubs were worth more as building plots than as businesses.
Thousands were turned into flats, housing where the snug used to be. While all this was happening, the founder of Enterprise Inns, Ted Tuppen, gave himself a 50% pay rise in 2010, taking home 1.22 million pounds. His company's share price had already collapsed by over 96%.
His tenants were earning 15,000 a year.
Members of Parliament stated on the record that he had done more damage to British pubs than any other individual.
Parliamentary committees investigated the pubco model for 7 years. The chief executives of both companies appeared before MPs and were found to have given misleading evidence. Malcolm Holland fought for years to change the law, naming the companies and their bosses on the floor of the Commons. In November 2014, he finally secured a parliamentary vote, and the government was defeated.
That vote led to the pubs code. But by then, tens of thousands of pubs had already gone. The law arrived a decade too late. And back in January 2003, the beer orders themselves had been scrapped. The mess they created carried on long after they were gone. Meanwhile, the supermarkets had been quietly winning a different fight.
>> [music] >> In 1990, nearly 80% of all beer in Britain was drunk in pubs. By 2014, for the first time ever, more beer was sold in supermarkets and off-licenses than in pubs, clubs, hotels, and restaurants combined. That has never reversed. Over two-thirds of all alcohol in Britain is now bought from shops, not pubs. The reason is price. For decades, supermarkets were legally allowed to sell alcohol at or below what it cost them just to get people through the doors. Below-cost sales weren't banned until 2014, by which point the habit was set. A pint of the same lager that costs £4.50 in a pub costs roughly £1.80 in a supermarket. The government taxed pub beer into the ground while letting supermarkets sell the same product at prices no pub could match. And the taxes kept [music] climbing. The beer duty escalator, introduced in Alistair Darling's 2008 [music] budget, automatically raised beer tax by 2% above inflation every year. Between 2008 and its scrapping in 2013, beer tax jumped by over 40%. UK beer duty stands at roughly 53p per pint compared [music] to 4p in Germany and 3p in Spain.
Roughly a third of the cost of every pub pint is tax. None of these things alone would have done it, but they all hit at once. The pubcos stripped the money out, the smoking ban took the customers, the supermarkets undercut the price, and the government taxed what was left. In 2014, the Campaign for Real Ale reported 29 pubs closing every week, [music] nearly four a day. In 2017, Britain lost 1,950 pubs in a single year, the worst on record. But numbers are just numbers.
What actually disappeared was something else. The darts team that met every Tuesday for 30 years, gone. Not because the players stopped wanting to play, but because the room they played in was sold and turned into flats. The old man who came in every day at noon had his pint, spoke to the landlord and the regulars, and went home. When the pub closed, he stopped leaving the house.
>> [music] >> Nobody checked on him because the people who used to check on him did it at the bar. One in three people in Britain say they, or someone they know, became more isolated after their local closed. For a lot of men, especially older men, the pub was the only place they went. When that went, nothing replaced it. Nothing.
Around 45,000 pubs remain, down from 75,000.
The pubs still standing are mostly doing something different. Gastro pub menus, craft beer lists, rooms to let upstairs.
They are trying to survive in a world that changed around them, and many of them are good. But the drink-only community local, the one with the public bar and the dart board and the landlord who knew your name and had your pint ready before you reached to the counter, that pub is almost certainly gone. The building might still be there. You can sometimes see where the old [music] pub sign was mounted, a faint bracket in the brickwork with nothing on it now. If you remember your local, tell me about it in the comments. The name, the landlord, the room you sat in. And if you know someone who lost theirs, share this with them. And And if that Bismarck story caught your attention earlier, don't forget the link in the description or the pinned comment to try World of Warships for free. Please subscribe to the channel to keep these stories alive.
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