Pubs boss warns price of a pint could go up by 30p

Rising energy costs and a new National Living Wage of £9.50 per hour will see the price of a pint rise by around 30p, a boss has warned.

City Pub Group chief Clive Watson warned price rises were “the only way forward”, with higher wages for those over 23 predicted to cost the firm £1m a year.

Other pub owners also echoed Mr Watson’s warning and industry bodies have called for help for the sector.

Emma McClarkin, chief executive of the British Beer & Pub Association, told the BBC that while wage  increases would be “welcomed” by many staff in pubs, it was a further cost increase for pubs who were “still struggling to recover and face an uncertain future”.

“It makes beer duty, business rates and VAT cuts in the Budget on Wednesday all the more important for the viability of our sector,” she added.

‘Off life support’

Wetherspoons, however, has announced it will cut drink prices next month on a range of alcoholic and non-alcoholic drinks despite announcing a record annual loss after Covid lockdowns saw its pubs shut for 19 weeks.

City Pub Group boss Clive Watson said the fact 90% of staff had been furloughed let it weather the financial storm of the pandemic.

He told the BBC: “That’s basically kept the industry on life support, but we’re coming off life support now and we need to be able to have a road to recovery

“We want to do our bit – it’s very important, but at the same time we don’t want everything going up the whole time, because all that will do is stoke inflation.”

Kate Nicholls, chief executive of the trade group UK Hospitality, said the VAT tax rise would be “unsustainable” and mean that businesses would have “no option” but to pass the cost on to customers.

“We are facing into considerable headwinds with a bubble of inflationary pressures coming through the supply chain, as well as wage rate inflation.”

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