The average price of a pint is set to soar over £5 for the very first time and the British Beer and Pub Association said this is due to the impact of Rachel Reeves’s Budget. The price of a pint is set to increase by 21p, the BBPA said, making the average price of a pint go up from £4.80 to £5.01. The trade body is calling on the government to review what they say is an “unfair” regime, reform business rates and phase in new employment costs which they said are adding to the price increase.
Chief Executive of the British Beer and Pub Association, Emma McClarkin, said: “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.
She added: “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.”
The BBPA sid the price hike is due to a range of cost increases stemming from the government’s budget changes set to take effect in April including rises in the national minimum wage, national insurance rates, and reduced business rates discounts.
The experts said that the net cost of the Autumn Budget announcements across the pub and beer sector is of about £650 million.
Tim Black, Associate Director at Frontier Economics, said: “The sector is at the sharp end of a wave of policy changes that will push up costs – higher wages, increased National Insurance, reduced business rates relief, and new packaging rules.
“The cumulative impact will be significant.
“It’s vital that policymakers recognise these pressures and ensure the environment supports investment and growth.”
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