Britain's pubs face lost decade The pub industry faces a lost decade with sales unlikely to hit 2007 levels for at least another five years despite the government's efforts to reduce the cost of beer in the latest budget. Tightened consumer spending and people drinking more at home will continue to weigh on industry sales even after George Osborne, the chancellor, reduced duty on beer by 1p and cancelled planned above-inflation duty increases. The UK pub industry turnover peaked at £26bn in 2007 before slumping to £21.6bn in 2012 as thousands of pubs across the UK shut their doors during the recession. The industry's revenues are expected to recover to only £24.3bn by 2017, according to Mintel, the research group. Alistair Darby, chief executive at Mitchells & Butlers, which has 1,600 managed pubs and restaurants across the UK, said: "I can't really see [a return to 2007 levels] happening and in many ways I hope it doesn't. It was unreal. "What we are experiencing now will be around for some time to come - the new normality," he added. Between 2007 and 2012 nearly 7,000 pubs closed according to figures from Camra, the beer lobby group. The traditional beer-focused boozer suffered the most from a triple hit of a ban on smoking, rising beer and utility costs and the recession. Britain's remaining 57,000 pubs have had to evolve rapidly, placing greater emphasis on serving better food, attracting more families and even branching out into offering hotel rooms. Stephen Goodyear, chief executive of the pub chain Young's, said: "It feels like a 100 years ago that smoking was banned in pubs - and the industry has benefited. You wouldn't want to eat with someone blowing cigar smoke over you. Although the number of people visiting pubs has fallen, people are spending more when they do go, according to Chris Wisson, an analyst at Mintel. "It's a special occasion when people go out now - so they treat themselves," he said. Premium brands are actually doing quite well. Marston's, which has 2,100 tenanted and managed pubs, saw sales volume of its premium cask ale jump 8 per cent year-on-year in its latest half-year results. Any direct impact from the beer duty cut and the end of the beer duty escalator will be minimal, according to a survey by Mintel. Only 6 per cent of beer drinkers said they would drink more following the duty cut. Some pub chains have pushed into the hotel market to increase sales. Shepherd Neame, the pub chain and brewer behind Spitfire, has opened three hotels in the past 18 months, leaving it with almost 500 rooms. Fuller's, meanwhile, now has more than 600 rooms - up from just over 400 in 2008.