Booze costs will rise from TOMORROW in blow for millions celebrating end of dry Jan – is your favourite tipple affected?
MANY hospitality and pub groups have warned they could be forced to raise prices following the recent Budget announced by Labour Chancellor Rachel Reeves.
Last week, the head of Revolution Bar said the move would have a very "damaging impact" on the group.
In a statement to investors, chief Rob Pitcher said the reduction in the National Insurance thresholds would be "regressive" and "offer no clear pathway for economic growth within the hospitality sector".
The chain closed 25 sites last year as part of a restructuring plan, blaming Brits spending less on nights out for its troubles.
Chief executive officer of Fuller's, Simon Emeny, previously told The Sun the price of beers at its hotels and boozers would likely rise by 10p.
Wetherspoons' boss Tim Martin also said the hike in increased staffing costs had a “significantly bigger impact on pub and restaurant companies than supermarkets”.
He said in Spoons' results statement: “Wetherspoon therefore calls upon Sir Keir Starmer to redress this imbalance, thereby striking a blow for tax equality and ending discrimination in favour of dull (yawn, yawn) dinner parties.”
Chancellor Rachel Reeves said during her autumn statement she would raise employers' National Insurance contributions (NICs).
She also announced a reduction to the threshold at which businesses start paying NI contributions from £9,100 to £5,000.
It's estimated that the move will raise £25billion - the equivalent of around £800 per employee for each firm.
At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.
Emma McClarkin, chief of the British Beer and Pub Association, told The Sun these changes leave hospitality businesses on a "cliff edge".
The impact of the budget alongside changes to tax could leave the sector with a £650million loss.
She said: "Brewers and pubs pour billions into the economy and Treasury, support more than a million jobs and are a cornerstone of the community.
"However, we face a cliff edge in April when a staggering £650m extra in costs will kick in, including the ending of vital business rates relief, new employer costs, and the beer bottle tax."
The industry leader said these changes could "lead to businesses being forced to pass on extra costs to customers".