Rachel Reeve’s National Insurance tax raid has resulted in a popular London pub chain adding an additional 4% service charge to drinks bought at the bar, it says. The Well & Boot in Waterloo station has applied the ‘optional’ yet automatic levy onto their food and drink in a bid to offset the higher taxes implemented by the Chancellor in her October Budget.
This means the cost of a pint of beer or cider will automatically rise by 30p, unless the customer asks to remove the cost. A pint of a Camden IPA at the pub is £7.65, so the cost rises to £7.95 if the 30p is added. The venue informs customers of the fee on a small sign at the bar. The branch in the busy London station is one of nine Glendola Leisure pubs in the capital to apply the surcharge, with The World’s End in Camden and The Fox in Shoreditch also adding the service charge.
Last year, Ms Reeves hiked up the rate of employer National Insurance by 1.2% from 13.8% to 15%, which took effect in April this year. At the same time, the threshold for paying NICs dropped from £9,100 to £5,000 per year, resulting in higher costs for businesses.
A Glendola spokesman told London Centric: “Given recent government increases to employer National Insurance, this system is the most cost-effective way for our staff to receive gratuities.
“In a challenging climate for hospitality, this helps us look after our teams and keep delivering great experiences for guests.”
The higher levies for businesses have resulted in the hospitality industry losing nearly 70,000 jobs between October 2024 and May 2025, according to UK Hospitality.
Pubs and restaurants have been battling increasing costs in recent years. The average price of a pint nationwide surpasses £5, with London pints averaging £6.10, according to research by The Morning Advertiser.
A Government spokesman told The Telegraph: “Pubs, cafes and restaurants are vital to local communities, that’s why we’re cutting the cost of licensing, helping more pubs, cafes and restaurants offer pavement drinks and al fresco dining, and extending business rates relief for these businesses – on top of cutting alcohol duty on draught pints and capping corporation tax.”
