A pub group has announced a 4% increase in beer prices, hiking the price of bottles and pints for customers across the country. Stonegate Group has 333 pubs in total across the country, with popular boozers in the group including Slug and Lettuce, Walkabout and Popworld. The group will implement the 4% price increase on beer and other booze from May 2.
The price increase could reportedly add an extra 15 to 20p onto the price of drinks in Stonegate Group venues. The group has defended the price increase in a statement shared with the press, referring to increased costs and other factors that resulted in the decision.
It said: “Our annual price review this year reflects the significant cost pressures and challenges faced by our sector over the last 12 months.
“We are absolutely committed to supporting our publicans, enabling them to continue to play the vital role in the communities they serve.”
Adding to the costs faced by hospitality businesses is the Government’s recent National Insurance hike, which took effect earlier this month. Employers now have to pay NICs at 15%, up from the previous 13.8%.
Additionally, the threshold at which employers must start paying was slashed from £9,100 to £5,000. Chief executive of the British Beer and Pub Association Emma McClarkin previously said: “No one wants to see the cost of an average pint increase by a further 21p and break the £5 average pint barrier that will be required for pubs to maintain their punishingly slim profit margins.
“It is more urgent than ever that Government looks at ways to cap or reduce the costs of doing business so we can keep pubs open, preserve their community value, and make sure the price of a pint remains affordable for all.”
Following Rachel Reeves’s spring Budget announcement in March, the British Beer and Pub Association said the average cost of a pint in the UK would exceed £5.
Ms McClarkin said: “The cumulative impact of these taxes and regulations is now plain to see and it is highly unfortunate that the only way many pubs can remain viable is to pass on the array of upcoming costs to consumers.”
Other major UK pub chains have recently increased their drink prices, with Wetherspoons adding 30p onto the cost of some drinks and Young’s increasing the price of pints by 20p.