Pub chain shares splutter ahead of smoking ban

Shares in pub chains took a tumble this weekend as nervous investors abandoned ship ahead of the impending smoking ban next week. Enterprise Inns saw its share price fall 17.5p to 674.5p, while Punch Taverns' share price dropped 20p to 1,272p. Two other brewery companies, Scottish & Newcastle and SABMiller, also saw share prices fall by smaller amounts on Friday.

City analysts said the impact of the smoking ban, which comes into force next Sunday, was being felt across the leisure industry. Other factors affecting the drop in share prices include a forthcoming government review into alcohol prices and promotions.

On 1 July, nearly all enclosed public spaces and workplaces will become smoke-free as the Health Act 2006 comes into force. Pubs, factories, public transport and work vehicles used by more than one person will all become smoke-free.

A survey of 1,700 adults by ICM Research this month found that 78 per cent of people, including 53 per cent of smokers, believe the ban will have a positive effect on health.

The survey also found that 66 per cent of people said the legislation would not affect how often they visit the pub and 18 per cent said they would go more often.

Nearly three-quarters of those surveyed said the ban would not affect how often they go to restaurants.

Caroline Flint, the Public Health minister, said the legislation would see the biggest improvement in public health for a generation.

"I would like to thank everyone, from health and business groups to the leisure and hospitality industry, for their involvement and support in the smoke-free England campaign and for helping make it a reality," she said.

Meanwhile, Cherie Blair took on a legal case this week advising a sex-themed nightclub in its attempt to overturn the ban.

The Prime Minister's wife, who made Tony Blair quit smoking as a condition of getting married to him, took on the case under the "cab-rank rule", which means she happened to be next in line to take on a new case, when it came to her legal firm, Matrix Chambers. "I think everyone well knows my views on smoking, but I keep to the rules of my profession," she said on Friday.

The QC, using her professional name, Cherie Booth, will be advising businessman Dave West on how the ban could breach the human rights of staff and guests at the Hey Jo club. Mr West claims the ban will force him to close the club, which is in the St James's area of London. He brought the case to Matrix Chambers and Ms Booth, a founding member of Matrix,then visited the club as part of her advisory role.