Pubs serve as a critical linchpin in driving a district’s economic success, the chief executive of Pub is The Hub says, as the Government awarded £3m to the Yorkshire-based charity.

Pub is The Hub helps pubs in rural and deprived areas across the country to diversify their services and activities.

This could be in setting up village stores in pubs, or community cafes, play areas and arts and crafts groups, expanding pubs’ roles as vital local hubs.

And with research findings to show every £1 invested in pubs’ services can deliver £8.28 in social value, the move could soon deliver huge returns.

Charity chief executive John Longden, made an OBE in 2014 for services to rural communities, said it seemed the “penny had dropped”.

Promises of long-term Government funding, at £1m a year for the next three years, can deliver some measure of confidence and recognition, he said.

“For years, pubs have relied on the economy to prove they are viable and have an active worth,” he said.

“Now the prosperity of a town is rather more dependent on pubs’ prosperity.

"Local economies may now need the publican quite urgently.” The £3m award is part of the new £10m Hospitality Grant Scheme for independent pubs, restaurants and cafes, launched by Halifax MP Kate Dearden as Minister for the Future of Work.

“Hospitality venues are where communities come together and where many people get their first experience of work,” she said.

“They create jobs and help our towns and neighbourhoods to thrive.

“This funding will back local businesses to grow, boost opportunities for people across the UK and support growth in every part of the country.”

It follows announcements that pubs are to receive a 20 per cent cut to their business rates bills from April, saving each setting an estimated £1,000 next year.

Mr Longden, welcoming the move, said it will inspire local publicans to diversify to create much-needed local services and rural, remote or deprived areas.

Referencing the charity’s social value report, published last year to show incredible returns for every investment in local pubs, he said it wasn’t just about “bricks and mortar”.

“People talk about economic value – social value is what gives people confidence and wellbeing,” he said. “It’s a measure of happiness. We need to stop seeing pubs as food and drink and accommodation,” he added.

“There’s a much broader spirit – if you have an inspired publican running it. I just hope we can find inspired publicans.

"This recognition, with three years of security, gives people confidence that the Government says pubs have a wider role to play.”

Pub is The Hub was founded by King Charles III when he was the Prince of Wales in 2001. Over the past 25 years it has been able to help hundreds of pubs to diversify, with many receiving advisory and financial support.