UK Pubs Forced to Raise Pint Prices Above £5 Amid Rising Taxes.
British pubgoers are facing yet another price hike, with the average cost of a pint set to break the £5 barrier for the first time. This unwelcome milestone comes as landlords grapple with a raft of tax increases introduced by Chancellor Rachel Reeves, leaving many with no choice but to pass on soaring costs to consumers.
According to the British Beer and Pub Association (BBPA), the measures introduced in last October's budget will cost the sector a staggering £650 million in total. Last week, brewer Shepherd Neame, known for ales such as Spitfire and Bishops Finger, confirmed it would be increasing prices in response to rising taxation.
BBPA chief executive Emma McClarkin warned of the devastating impact on pubs and consumers alike: “The cumulative impact of these taxes and regulations is now plain to see, and it is highly unfortunate that the only way many pubs can remain viable is to pass on the array of upcoming costs to consumers.
“No one wants to see the cost of an average pint increase by a further 21p and break the £5 average pint barrier that will be required for pubs to maintain their punishingly slim profit margins.”
The pub and hospitality industry has already endured immense hardship, first from prolonged closures during the COVID-19 pandemic that left many businesses burdened with debt, and then from soaring inflation and the ongoing cost-of-living crisis. As a result, the number of pubs in the UK fell below 39,000 for the first time in December 2024, following a wave of closures, according to property data firm Altus Group.
With further financial pressures looming, pubs will soon be hit by an increase in the national minimum wage, a rise in national insurance rates, and a lower threshold for national insurance contributions. Additionally, the business rate discount for hospitality firms is set to be slashed from 75% to just 40% in April, further squeezing landlords already struggling to stay afloat.
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McClarkin urged the government to intervene before the situation worsens: “It is more urgent than ever that government looks at ways to cap or reduce the costs of doing business so we can keep pubs open, preserve their community value and make sure the price of a pint remains affordable for all.”
While Londoners may be accustomed to paying over £5 for a pint, the national average is set to surpass that threshold next month, according to research by Frontier Economics. The study projects an increase from £4.80 to £5.01 per pint, marking a significant psychological and financial blow to pubgoers across the country.
For many, the rising cost of a pint is emblematic of broader financial pressures squeezing households and businesses alike. What was once an affordable and cherished British pastime is rapidly becoming a luxury, further eroding the social and cultural role that pubs play in communities. If prices continue to rise unchecked, many drinkers may find themselves priced out of their local pubs altogether, accelerating the decline of an industry already on the brink.
