The average price of a pint of beer in the UK is set to rise above £5 for the first time next month, according to research by Frontier Economics. The study, commissioned by the British Beer and Pub Association (BBPA), forecasts the average pint will cost £5.01, up from £4.80.
Publicans blame tax rises introduced by Chancellor Rachel Reeves in last October's Budget. From April, pubs will face higher costs due to an increase in the national minimum wage, a rise in national insurance rates, and a lower threshold for paying national insurance. Additionally, business rate discounts for hospitality firms will be cut from 75% to 40%.
The BBPA says these measures will add £650 million in net costs to the pub sector. Emma McClarkin, chief executive of the BBPA, said: "The cumulative impact of these taxes and regulations is now plain to see... No one wants to see the cost of an average pint increase by a further 21p and break the £5 average pint barrier."
Shepherd Neame, brewer of Spitfire and Bishops Finger, has already announced it will raise beer prices. The pub sector continues to struggle after the pandemic, with the number of pubs falling below 39,000 for the first time in December 2024, according to Altus Group.