A major pub chain with more than 1,500 site across the UK will be increasing the price of draught beer across its estate to level finances after Rachel Reeves’ recent Budget.
Customers at Marston’s will be paying up to 10p more for a pint from the taps, although costs will vary across the country due to regional pricing.
A Marston’s spokesperson said: “This is not a decision we’ve taken lightly but, as has been widely reported, the cost of doing business is increasing across the sector.
“At Marston’s, we pride ourselves on offering great value and experiences for our guests every day of the week, and our teams are working hard to minimise the impact of external pressures on our customers and pub partners.”
Labour’s hikes on business National Insurance Contributions (NIC) and an increase to the National Living Wage has left firms with increased cost pressures.
Despite Marston’s having reported a 65% boost in profits before tax to £42.1million in the year to September 2024, the October Budget will still affect the chain.
The government increased NIC by 1.2% to 15% which will contribute to an estimated raise of £25billion, with the minimum wage going up by £1.40 to £12.21 for people aged between 18 and 20.
Reeves also announced that draught duty will be cut by 1.7% with the aim of shaving a ‘penny off a pint in the pub’. However, with the raising of other taxes, some establishments such as Marston’s will be increasing prices instead.
Other major retailers expecting to see prices rise following the hike in employment costs from April 2025 include Greggs, Toby Carvery, Currys, Sainsbury’s, Tesco and Asda.
Speaking to The Sun, another major chain, Fuller’s, said the price of beers at its hotels and pubs would also likely rise by 10p following the budget.
Similarly, Tim Martin, founder and owner of Wetherspoons, has warned his customers of potential cost surges, although he said the group will try to remain competitive.
Martin said: “Cost inflation, which had surged to high levels in 2022, gradually diminished over the subsequent two years.
“However, it has now significantly increased again following the budget.
“All hospitality businesses, we believe, plan to increase prices, as a result.
“Wetherspoon will, as always, make every attempt to stay as competitive as possible.”
