Latest figures from the Beer and Pub Association (BBPA) have revealed that beer sales have continued to fall over the last quarter.

According to the BBPA's UK Quarterly Beer Barometer, total beer sales for the past three months fell by 7.2 per compared with the same period last year, with pub sales down by 8.1 per cent. The figures represent the third largest quarterly fall for a decade, and follow a 4.5 per cent fall in the previous quarter between April and June.

Between July and September, 161 million fewer pints were sold compared with 2007 figures, a fall of 1.8 million pints per day, and the BBPA says that as a result, the Treasury will be left facing a £1.2bn tax shortfall over the next three years. Rob Hayward, chief executive of the BBPA, said: "The accelerating decline in beer sales is a clear sign of a worsening economy, worried households and weakened spending. The downturn has now now broadened to affect sales through both pubs and supermarkets.

"Sinking beer sales and the record five pubs a day closing is a barometer of the UK economic climate. We're busy responding to the economic challenges of the day. But we need greater flexibility. Government needs to be looking to ease the constraints of the tax and regulatory burden on our sector."