PUBS in rural areas are being financially squeezed by powerful national chains, according to real ale campaigners.

At a time when beer sales are down nationally and pub closures are at an all time high, it is claimed that businesses like Punch Taverns are pricing out landlords over beer costs.

And while some rural pubs are reporting satisfactory trading levels, there are many who are being forced to diversify or face financial ruin.

Keith Porter, of Chester & South Clwyd Camra, said: “Over 30,000 pubs belong to pub companies. The leading players are Punch and Enterprise Inns who own almost 20,000 between them.

“These companies buy beer aggressively from the brewers, then sell on to their pub tenants having added anything up to 50% margin.

“There is no doubt that a large percentage of pubs are struggling to survive, let alone prosper.

“Many rural pubs in Cheshire are a focus for village life and their continued existence is vital for sustaining a balanced village ambience.

“Pub companies have no interest in the sustainability of communities, merely in the profit the pub generates. If this is considered insufficient, rents are raised to squeeze more out of the licensee, and if this fails, the pub can always be closed and sold for development.”

Many pub landlords are turning to food as the answer to battling the credit crunch, spiralling costs and price hikes on electricity and fuel.

David Hughes, landlord at The Shady Oak, in Tiverton, reported good sales this summer but he supports Camra’s position on the challenges facing Chester’s pub industry.

Although satisfied with seasonal trading at The Shady Oak, Mr Hughes encountered high charges at his former licensed business.

He said: “We are not doing too badly because of our location and the fact we are food establishment and a great summer business.

“But it’s very difficult, I have been in the industry for 20 years but still with all that experience, it’s still a very tough job.

“The government have not helped but it is actually the owners of these pubs that are killing the industry.

“On top of the taxes, insurance and rates, companies like Punch Taverns will contract their licensees to buy beer from them but they will charge over the odds. It’s just not fair.”

But pub companies say they are doing everything in their power to ensure pub licensees are given every opportunity to make the best use of their business.

A spokesperson for Punch Taverns said: “We are passionate about safeguarding the future of the great British pub and about developing strong relationships with our licensees to help them build successful, sustainable businesses.

“We have to recognise, both as pub companies and individual licensees, that pubs must adapt and evolve if they are to survive.

“In addition to our industry leading support package, we continue to work closely with our licensees to help them to find new ways of improving their business, developing their retail proposition and financial stability.”