Pint Prices to Drop by 1p Amid Controversy Over Cost Increases

Starting Thursday, the price of draught pints is set to decrease by 1p following a significant 1.7% cut in alcohol duty, marking the first reduction in a decade. This change is aimed at revitalizing the pub sector, with the measure expected to affect about 60% of alcoholic drinks served in these establishments. The relief specifically targets draught beverages under 8.5% ABV, potentially benefiting craft producers, but concerns have been raised about looming costs from increased National Insurance contributions and rising minimum wages, which threaten to offset this tax relief. Critics argue that due to these additional costs, pubs may soon increase the price of pints by as much as 40p. Notably, Wetherspoons’ CEO has stated that heightened employment costs could result in a staggering £80m loss for the chain. The relief measures, totaling £85m, are however criticized for not adequately addressing the financial pressures facing the hospitality industry, which has already been weakened by changing consumer habits amid a cost-of-living crisis. Industry voices are emphasizing that the Budget initiatives will not be sufficient and are calling attention to the struggle many pubs are facing as customers tighten their spending.