A new report has warned that the vast majority of pubs across the UK expect to raise prices following recent budget changes, with Scottish pubs bracing for higher costs in the run up to Christmas.
A survey by the British Institute of Innkeeping found that 90% of pubs plan to increase drink prices, while 71% expect to raise food prices in response to higher operating costs.
The report also found that 80% of pubs anticipate cutting staff hours, with 42% saying redundancies may follow if pressures continue.
The findings have prompted criticism from the SNP, which argues that increased Employer National Insurance Contributions are placing additional strain on an already fragile hospitality sector.
The SNP described the Prime Minister as “No Cheer Keir”, claiming the measures will reduce footfall over the festive period and force customers to pay more for a pint.
Industry leaders have warned that the cumulative impact of taxation and rising costs risks undermining the role pubs play in local communities.
Steve Alton, Chief Executive of the British Institute of Innkeeping, said:
“The Prime Minister stated that Pubs are the beating heart of our communities.
“When our locals do well, our economy does too.
“This budget has ripped the heart out of those communities.
“We need Government to urgently reverse their decision on taxing our pubs out of existence and deliver meaningful change to the unsustainable levels of tax they already face, before it is too late.”
SNP MP Chris Law has called on the Labour Government to reverse the rise in Employer National Insurance Contributions and provide support to pubs during the festive period.
Commenting on the report, Chris Law said:
“No cheer Keir has put a premium on the price of a pint thanks to his disastrous budget and it is Scottish customers who will feel it in the pocket over the festive period.
“The message from the Labour Party is clear, it will be lonely this Christmas if you fancy a pint thanks to Keir Starmer’s prices.
“Labour’s hike on Employer National Insurance Contributions is destroying jobs and axing that would be the biggest gift Starmer could give pubs this Christmas.
“Far from being in the Christmas spirit, the question on everyone’s lips is whether Sir Grinch Starmer knows it’s Christmas time at all.
“Last Christmas, Starmer served Scots a Scottish whisky tax hike and this year he has done it to pints.
“As revellers step into Christmas pubs this year, they can thank Starmer for picking every single pound in their pocket over the festive period.”
The Labour Government has not yet responded directly to the claims, while pub operators continue to warn that sustained cost pressures could lead to reduced services, higher prices, and fewer staff hours through the winter months.
