£49 warning to anyone whose pub order is a pint of beer
Pint prices are set rise after a 'regressive' National Insurance tax raid, a pub group has warned. After the Labour Party Budget, which Chancellor Rachel Reeves delivered a fortnight ago, drinkers could see pint prices skyrocket up and down the country.
Simon Emeny, chief executive of Fuller's, confirmed price rises would exceed 10p per pint across the industry, telling The Sun: "It won't be as low as 5p." Some analysts suggest increases could reach as high as 40p per pint.
"We won't be able to afford to just take the £8million hit to the bottom line, so there will be price increases and it will be inflationary," said Emeny. The CEO said: "Our customers want a high level of service so it's imperative we don't compromise on that."
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In the United Kingdom, the average person drinks about 124 pints of beer per year, which is half the amount consumed 50 years ago. Beer is still the most popular drink in the UK, with 36.1% of the population choosing it over wine, which is consumed by 33.7%. A 40p hike could mean a £49 charge.
Fuller's chairman Michael Turner criticised the changes, stating: "The Chancellor's actions are a direct attack on those labour-intensive industries that are the lifeblood of our economy." He warned the measures would "drive inflation higher, put pressure on wages, and will drive many businesses to the wall".
Pub group Fuller's has revealed a £3million hit from the Budget move to increase employers' national insurance contributions and joined the growing list of firms warning over price increases to offset the impact. Chiswick-based Fuller, Smith & Turner - which has 5,500 staff - said it would need to raise prices for customers across its hotels and pubs as it faces a significant cost increase.
In last month's Budget, Chancellor Rachel Reeves announced the employers' rate of NI will increase by 1.2 percentage points, to 15 per cent from April. In addition, the level at which employers become liable to pay NI on salaries will reduce from £9,100 to £5,000 per year.
And the minimum wage for over 21s, known officially as the National Living Wage, will rise from £11.44 to £12.21.