Pub trade split over new law

In wealthier central and suburban parts, where pubs are more likely to double up as restaurants and fewer drinkers smoke, trade is little changed or even up.

But in neighbourhood pubs in poorer east and south London, sales of beer have been badly hit, in some cases by as much as 15 per cent.

In these areas a much higher proportion of customers than average are smokers and they are much more likely to now drink at home.

Not only that, but these pubs depend on revenue from fruit machines and do not have food sales to fall back on.

Rob Hayward of the British Beer and Pub Association estimates that up to 5,000 pubs nationwide will be forced to close, including 750 in London.

He said: "The ban has had a very marked effect and since November the downturn has been even more marked. That's partly because of the winter weather but it's also clear the economic effects are piling in on top."

But Simon Emeny of Fullers Inns, the last independent chain of brewer-owned pubs in London, said: "All the evidence is a smoking ban initially causes some disruption - the sulky phase - but in the longer term it give pubs a fantastic opportunity to recruit new customers, particularly women and families. It could turn into the best thing that's happened to pubs."

Surveys suggest publicans and restaurateurs in central London are happy about the ban. In Westminster, more than half of all licensed premises reported no change in their revenues. Only 15 per cent said they had lost money.

According to the Publican Industry Report 2008, only 27 per cent of licensees want the ban reversed.