HUNDREDS of jobs in Barrow could be put at risk if proposed tax increases on beer are implemented, campaigners have warned.

Tax on beer is expected to rise by 3.4 per cent in the Chancellor’s Autumn Budget, delivered on Tuesday. With consumers increasingly opting for cheaper supermarket drinks and pub margins stretched, local establishments are braced for further struggles.

An investigation has revealed that Barrow’s 67 pubs and bars directly employ a total of 661 people, while the 176 venues in South Lakeland employ 2,579 and 92 in Copeland employ 702.

Britain’s Beer Alliance fears the tax increase could accelerate the rate at which pubs and bars are closing.

Across the UK, 3.2 pubs have closed on average every day over the last two years. If that trend continues, Britain’s Beer Alliance, an umbrella organisation for major brewers and pub companies, says one in 10 pubs nationwide could close within five years.

David Cunningham, programme director of Britain’s Beer Alliance, said: “Pubs are the heart and soul of our culture and communities, they support many jobs, contribute significantly to the economy and are dear to people’s hearts right across the country.

“Pubs already face a range of tax pressures and if the Chancellor raises beer duty in line with Retail Price Index inflation as planned on October 29, pubs will feel the pinch even more. Seven in every 10 alcoholic drinks sold in a pub is beer, so it’s easy to see how a small tax increase adds up over a year.”

A number of Barrow pubs have closed and been converted into serviced apartments such as the Wheatsheaf, the Crystal Palace and the Washington. However, in Barrow at least, it appears the town centre is enjoying something of a “renaissance”, according to Colin Garnett from the Business Improvement District.

Despite the bleak outlook Barrow itself has, in the last 12 months, seen a number of new pub openings including the Odd Frog in Duke Street and, just last week, Tailors in Dalton Road.

“There is a confidence in Barrow,” Mr Garnett said.

“We’ve seen new venues opening and investment in the likes of the Townhouse, the Custom House, and the Duke of Edinburgh and we’re keen to continue to encourage people to come back into the town centre and give Barrow a try.”

Councillor Tony Callister, who supports his local the Strawberry in Abbey Road, called on the government to do more to support the local pub trade instead of increasing tax.

"We have a lot of good hostelries in Barrow with great hosts and they are supported by people locally. I would like to think the government would support them better. Further tax on alcohol is not the way forward."