World Economic Recession and its effect on London Pubs

World Economic Recession and its effect on London Pubs :

Pubs are part of life in London. Pubs in London are a place where friends and colleagues meet, business people negotiate deals and make transactions, and people gather to celebrate anniversaries and other functions, play games and relax. Some pubs in London provide accommodation.

World economic recession and credit crunch has resulted in Job cuts across the world including London. These situations have resulted in people having less disposable income and have to cut their budgets on drinks and food and other luxuries. Apart from the above factors the British government has increased taxes on Pubs by about 20% in last two budgets. This has made people to purchase the drink in the super markets and drink at home. People are organizing get to gathers and anniversary and other parties at their homes to reduce the budget on their parties due to recession. Pubs in London hit by economic recession and Credit crunch are turning to strippers and lap dancers to pull in punters and survive economically.

According to Beer and Pub Association nearly on an average 52 pubs are getting closed per month in the First half of 2009 compared to 39 pubs being closed per month during second half of 2008 resulting in nearly 2377 pubs in London being closed causing a job loss of 24,000 in London pubs. Community pubs are more affected compared to other pubs in London, because community can not change their mode of business.