Spending cuts cause pub insolvencies to soar by 50% in first half 2011

By Becky Paskin

- Last updated on GMT

Related tags: Rugby world cup

Continued spending cuts have caused pub insolvencies to increase
Continued spending cuts have caused pub insolvencies to increase
The number of pub insolvencies has increased by almost 50 per cent in the first half of this year due to continued financial pressures forcing consumers to cut their spending.

According to figures from PricewaterhouseCoopers (PwC), the number of pubs claiming insolvency increased by 19 per cent in the first quarter of 2011 when compared to the same period in 2010.

In addition, the number rose to 30 per cent for quarter two when compared to the same period last year.

Robert Milburn, hospitality and leisure leader at PwC, said: "The latest PwC insolvency figures for the pub sector show no improvement in the first half of 2011 when compared with the first half of 2010.

"The trend could carry on as spending cuts continue to impact the UK economy and consumers continue to tighten their purse strings. A wet July also won't have helped things, but the hope of better weather in August, the start of the football season and the Rugby World Cup in September, will hopefully make for a better second half of the year."

Related topics: Pubs & Bars, Pub Trends, Trends & Reports

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