Agents and club officials are warning that predicted massive rises in UK beer and spirit prices will lead to damaging cuts in light entertainment budgets across clubland and in holiday centres.
Clubs and holiday parks - which together comprise a huge section of the market for light entertainment performers - rely heavily on bar income to generate profits. With some reports predicting an 80p hike in the cost of a pint of beer before the end of 2008, many in the light entertainment industry fear that losses will be passed on to entertainment bookers, who would have to cut the number of acts they employ or the amount they pay.
Bob James, president of the Agents’ Association, who also helps run a social club, told The Stage, while he felt the 80p increase being quoted in some quarters was unrealistic, clubland still needed to brace itself for higher alcohol prices.
He said: “I think there will be a downturn on what clubs and holiday centres spend on entertainment if they have to try and absorb any significant price rises. Any huge hike is going to be detrimental to the club market, but I feel the 80p a pint rise to a pint of beer which is being predicted by some is simply scaremongering.
“There are so many factors that go towards entertainers’ expenses these days - the cost of fuel and city centre charges. The topic [of higher alcohol prices] was discussed outside an Agents’ Association council meeting only last week and entertainment is the first thing clubs and holiday parks cut back on.”
James’ fears were echoed by officials at the Club & Institute Union - one of light entertainment’s leading employers. CIU general secretary Kevin Smyth added: “It does look as though later on in the year there will be a huge increase in the price of a pint. The breweries have already increased the price by between 8p and 10p a pint and there are more increases to come.
“It’s certainly a huge concern to clubs and I dare say some will look at what they spend on entertainment as they try to balance the books. The envisaged increases in tax and brewery prices make up a huge body blow to clubs.”
The warnings follow calls from the British Medical Association earlier this month for the government to increase duty on alcohol.
According to the organisation, a rise of 10% would see alcohol-related deaths drop by up to 30%. Any tax increase at the Budget would further affect beer prices, which have already risen due to a poor hops and barley harvest last summer and the rising cost in the aluminium that is used for barrels. Together, this has already seen expenses rocket for breweries. Chancellor of the Exchequer Alistair Darling is scheduled to make his Budget announcement on Tuesday, March 12.
Any increase will be seen as a further blow for clubland, which is already reeling from the introduction of the smoking ban in 2007. Earlier this year, Smyth told The Stage that 25 CIU venues had closed in the last three months, marking “the worst year during [his] 30-year involvement with the union”.
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