Labour urged to cut business rates 'swiftly' as pint prices soar

According to the latest figures from the Office for National Statistics (ONS​), the average price of a pint of draught lager in a pub rose from £4.57 to £4.78 between June 2023 and June 2024, an increase of 4.5%.​

The numbers, calculated by ONS using data from licensed venues across the country, marked the third biggest increase in pint prices over the past five years.

Previous data​ showed the cost of a pint of lager had risen by 4.6% year-on-year in both April and May this year.

Following the news, the Campaign for Real Ale (CAMRA) Chairman Nik Antona told the Morning Advertiser (MA) ​“urgent action” must be taken to secure the future of pubs.

Knife edge 

The chairman urged the Government to “swiftly” follow through on their pledge to reform the current “unfair” business rates system and reduce beer duty on pints for hospitality firms.

Antona added: “The ever-rising price of a pint is a continuous worry for consumers, struggling publicans, and the hardworking brewers and cider makers who serve them.

“This month’s ONS data report is another unwanted sign that the pub and beer trade is still balancing on a knife edge. 

“The 4.5% rise since last year brings the real risk that loyal pubgoers, still reeling from the cost-of-living crisis, will be unable to support their beloved local as much as they would want.

“Pubs, social clubs and taprooms do not wish to pass on the high prices to their regulars, but with the costs of goods and energy bills at sky high levels, plus the burden of unfair business rates, the only other option publicans have is to close their doors.”

Analysis of the official figures showed draught lager prices had soared by 29.1% against pre-pandemic levels, with the cost of a pint having stood at £3.70 in June 2019.

“During the cost-of-living crisis pubs and brewers absorbed many of the increasing cost pressures to encourage consumers to keep supporting the trade, in many instances to the detriment of their profitability."

In addition, costs had rocketed by more than two-fifths (41.5%) over the past decade, rising from £3.37 in June 2014.  

The cost of a pint of draught bitter in pubs also saw price increases in the year to June 2024, rising by 2.6% from £3.81 to £3.91, compared to a year-on-year uptick of 8.8% during the previous twelve-month period, when prices rose from £3.50 in June 2023.

British Beer & Pub Association (BBPA) chief executive Emma McClarkin told the MA​ while pubs and brewers strive to keep the price of going to the pub affordable for all, the cost of doing business remains a “major concern” for many.

She said: “During the cost-of-living crisis pubs and brewers absorbed many of the increasing cost pressures to encourage consumers to keep supporting the trade, in many instances to the detriment of their profitability. 

“However, the cost of doing business remains a major concern and unfortunately, as the latest ONS figures show, some costs have had to be passed through to customers. We cannot absorb any further increases to the cost of doing business.”

Growth objectives 

McClarkin added the beer and pub sector had faced “unprecedented” high energy bills in recent years and that these remain 22% higher than before 2022.

The chief executive further explained the last Government’s above inflation 10% increase in the National Living Wage​, which took effect in April, meant labour costs now accounted for up to a third of pub turnover on top of an increases in business rates for many. 

Moreover, data from Oxford Partnership earlier this week revealed 84 businesses had closed​ between 1 June and 6 July this year, while further figures from ONS showed insolvencies had increased 20%​ in the year to May 2024.

McClarkin continued: “The beer and pub sector creates hundreds of thousands of job opportunities in this country and we believe in fair rights and fair pay.

“We support the Government’s central growth objective and the importance of the local everyday economy in delivering this.  

“But for this to happen we need a commitment to reduce the cost of doing business by reforming business rates, reducing beer duty and VAT, and avoid imposing further inflationary increases to wage rates in order to keep the cost of a trip to the local pub affordable for all so we can deliver jobs creation and economic growth.”