Cost of a pint sees biggest increase for 10 years
In January 2020 the cost of a pint was £3.73 and as of January 2022, it had risen by 6.2% to £3.96.
Society of Independent Brewers (SIBA) national chairman Nik Antona said: "While disheartening, it is not surprising we are seeing one of the biggest price increases to the cost of a pint since records began.
“Pubs have been under significant financial pressure following two years of lockdowns, restrictions and partial closures, which is feeding these increases.
“From rising energy bills and the cost of goods going up, to VAT increases and the end of business rates holidays, pub owners are feeling the squeeze from all sides."
The Morning Advertiser last month reported the price of a pint could reach more than £10 by the end of the decade, according to research from marketing analysts Admirals.
Tricky few years ahead
Antona added: “What is especially concerning is the general cost of living increase is across the board, affecting disposable income for consumers to spend in the trade, which will ultimately compound the issue.
“It is going to be a very tricky few years ahead for our locals, and more support is urgently needed to help these vital community hubs weather the storm."
This comes as large operator JD Wetherspoon (JDW) announced prices at the majority of its sites will rise by 10p, with an extra 20p added to London venues.
Over the past 10 years, the price of a pint has continued to rise, with the last increase of this size being between January 2009 and January 2011, from £2.79 to £3.04 (25p).
The biggest overall increase since records began occurred between January 1989 and January 1991, where the average price of a pint soared by 25% from £1.03 to £1.29, an increase of 26p.
British Institute of Innkeeping CEO Steve Alton CEO said: “After two years of closures, disruptions to trade and lost revenues, our members’ pubs continue to face huge challenges in inflationary costs for their businesses, from delivery driver shortages to energy prices skyrocketing.
“While many are seeing an encouraging growth in trade as we head out of the pandemic, their margins are being squeezed across every area of their businesses with further inflation in their supply chain costs.
Financial pressures
“Passing these price rises onto consumers when they themselves are seeing pressure on their household income is not ideal, but for these vibrant and vital businesses to survive and thrive to face these challenges, they must use every opportunity available to them to recover and remain as sustainable businesses.
“We are calling on Government to support them by keeping the lower rate of VAT at 12.5% for a longer period, cutting business rates even further and expanding the differential rate of duty on draught products to include smaller container sizes.
“Our sector can support the economic recovery of the UK, but we must have the support in place from Government to allow them to trade fully and rebuild their businesses in 2022 and beyond.”
This comes as pubs face increasing energy costs, supply issues and an increase in both National insurance and VAT in April this year.
British Beer and Pub Association (BBPA) chief executive Emma McClarkin said: “As a sector we are facing increased costs across the board, notably due to supply chain pressures which have been heightened further due to events in Ukraine and increasing energy prices that are placing additional financial pressures on the beer and pub sector.
“If further support is not provided then these increased costs will need to be accounted for at some stage which is why we are urging the Government to heed the calls of our Long Live The Local campaign that seeks to support the sector for the long term as we move to living with Covid as an endemic virus.”
