UK’s pint prices climb as pubs grapple with tax increases
Pubs in London and across the rest of the UK are being forced to hike the price of pints to offset increasingly higher tax rates, says Emma McClarkin, CEO of the British Beer and Pub Association.
Writing in an op-ed in City AM, McClarkin noted that UK beer duty is almost three times the EU average – a staggering 12 times more than Spain and Germany – and brewers face a £120 million Extended Producer Responsibility bill, burdening them with punitive recycling taxes.
“When the cost of employing staff and complying with red tape continues to rise, and most of the money going in the till comes straight back out again in bills and taxes, closure becomes inevitable,” she said.
“They are not faceless corporations, they are run by industrious publicans – hard workers trying to earn enough each week to pay staff, suppliers and the taxman. On a £5 pint, a publican may make 12p, having given more than £1.50 to HMRC, with the rest going on costs.”
McClarkin noted that in April 2025, the average price of a London pint rose above £6 for the first time, hitting £6.06 – a pound more than the national average. Publicans do not want to raise prices, especially when customers are already stretched, but they have little choice.
I am worried about pubs, says Reeves
For her part, Chancellor Rachel Reeves has confirmed an announcement to soften the effect of looming rate rises on pubs was coming in the next few days or weeks.
Reeves said the “biggest concern” was around pubs, which she said were badly hit during the pandemic and were facing a particular increase in business rates.
“I think most people would accept that now the pandemic is over, some of that temporary support does need to come away. But it’s about the speed at which you do that,” she said.
Reeves was asked what support measures other hospitality businesses in the country could expect, but she reiterated that pubs were her main concern as of right now.
“I think that people can see that the biggest impact and the biggest concern right now is around pubs. Some of the smallest businesses, particularly some cafes, don’t pay any business rates at all because they’re not big enough to do so.”
