The cost of a pint of beer is set to increase by 20p as pub chains have blamed Rachel Reeves’s Budget for price hikes.
Young’s brewery has announced a 3.5 per cent price increase across its pubs following Chancellor Rachel Reeves’s tax hikes on businesses.
The rise will add 20p to the cost of a pint in London, pushing prices to around £6.50 on average.
Drinkers outside the capital will see increases of approximately 17p per pint.
The rise will add 20p to the cost of a pint in London, pushing prices to around £6.50 on average
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The brewery confirmed the price adjustment comes in response to recent increases in alcohol duty and employer national insurance contributions announced in the Chancellor’s budget.
Young’s said the annual price adjustment reflects the need to recover rising costs from multiple sources.
The increases stem from changes to the national living wage, alcohol duty, and higher national insurance contributions.
Simon Dodd, CEO of Young’s, said: “Looking ahead, whilst we remain mindful of the headwinds facing consumers and the wider issues that our industry will encounter from the increase in both National Insurance contributions and National Living Wage, our business is in great shape, and we continue to be optimistic about the year ahead.”
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Drinkers outside the capital will see increases of approximately 17p per pint
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Young’s is not alone in raising prices, with other major pub chains warning of similar increases.
Fuller’s chief executive Simon Emeny announced in November that beer prices would rise by 10p across the company’s pubs and hotels.
Wetherspoon’s boss Tim Martin also indicated price increases would be necessary following the Chancellor’s budget announcement.
Trade body Hospitality UK has warned that the combined impact of national insurance and minimum wage increases will cost its members an additional £2,500 per full-time employee annually.
Had beer prices followed CPI inflation since 1987, a pint would cost £2.61 today
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These increases reflect broader pressures facing the hospitality sector, with employers grappling with rising operational costs.
Historical data shows the price of draught lager has risen dramatically, from 92p in February 1987 to £4.82 in December last year.
This increase has outpaced regular inflation significantly. Had beer prices followed CPI inflation since 1987, a pint would cost £2.61 today.
One of the steepest price jumps occurred after the pandemic, with pints rising from £3.75 in March 2020.
