The average price of a pint is about to tip over the £5 mark for the first time, as rising business costs force pubs to pass on the pressure to drinkers.
According to new research from Frontier Economics for the British Beer and Pub Association, the average pint, currently priced at £4.80, will jump by as much as 21p from April. That takes it to £5.01, as a raft of Budget policies kick in and push already tight margins to the limit.
From the start of next month, pubs will face a cut in business rates relief, higher employer National Insurance costs, a lower threshold for paying it, and a significant rise in minimum and living wages. A new packaging reform scheme, described by the BBPA as chaotic and unfair, will add further pressure.
The combined impact of these changes will cost the sector around £650mn, according to the trade body. It warned that while energy bills have eased and draught beer duty has been cut by 1p, those gains are dwarfed by the scale of the new charges.
Emma McClarkin, chief executive of the BBPA, said many pubs would have no choice but to raise prices if they are to survive. “No one wants to see the cost of an average pint increase by a further 21p and break the £5 average pint barrier,” she said. “It is more urgent than ever that Government looks at ways to cap or reduce the costs of doing business.”
While pint prices vary across the UK - and are already far higher than average in London - the £5 threshold is seen as a symbolic milestone for an industry that has weathered years of cost pressures, from the pandemic to soaring energy bills.
Tim Black at Frontier Economics said pubs had shown resilience but now faced another wave of challenges. “The sector is at the sharp end of a wave of policy changes that will push up costs,” he said. “It’s vital that policymakers recognise these pressures and ensure the environment supports investment and growth.”