This archive report was first published on 27 October 2021.
As the UK government prepares to unveil its Budget, the pub industry is facing a perfect storm of rising costs, including higher wages and energy bills.
City Pub Group, a UK-based firm, has warned that the price of a pint of beer could rise by as much as 30% to help pay for these increased costs.
On Monday, the government announced that the National Living Wage would rise to £9.50 per hour in April for those over 23 years old, a move that City Pub Group's boss, Clive Watson, estimates will cost his company around £1m a year.
Other pub owners have echoed Mr Watson's warning, with industry bodies calling for help for the sector.
Emma McClarkin, chief executive of the British Beer & Pub Association, said that while increases to the minimum wage and the minimum living rate 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.
However, Wetherspoons has announced that it will cut drink prices next month on a range of alcoholic and non-alcoholic drinks, with Becks bottles and whisky measures to be sold for 99p at some branches.
Wetherspoons' chairman, Tim Martin, said: 'Our pubs are known for their excellent choice of drinks at value-for-money-prices at all times.'
Chancellor Rishi Sunak's latest Budget, to be delivered later, comes as the pub trade is still recovering from lockdown measures imposed during the coronavirus pandemic.
City Pub Group weathered the financial storm thanks to government assistance, putting 99% of its staff on furlough during the pandemic.
'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,' Mr Watson told the BBC.
