Labour election pledge will push up pint price'

by Ewan Turney

The price of a pint will rise if Tony Blair delivers on his pre-election promise to further increase the national minimum wage, licensees have warned.

Last week Blair took a whistlestop tour of Britain, announcing six pledges for a Labour third term in power. One of these was to further increase the minimum wage ­ expected to rise to £5.05 in October and £5.30 next year. A rise to £5.05 would represent a 20% increase over the lastthree years.

Bernard Brindley, licensee at the White Lion in Pailton, Warwick-shire, said that although bar staff had always been relatively poorly paid, the rises over the last four years had brought them up to a satisfactory level. "Any further increases above inflation and licensees will have to ask themselves how they will manage the increase effectively," he said. "They will have to look each week at where they can cut back. Perhaps beer prices will rise."

Graham Rowson, Punch lessee at the Plungington Tavern in Preston was in full agreement. "It could have a disastrous effect on some pubs," he said. "The big chains will be fine but small operators like myself will have to look very carefully at overheads. The most probable response would be to put up the price of a pint, as costs have to be covered."

Rowson fears that passing on costs could infuriate his customers who have already had to swallow increases following the New Year beer price rises from brewers such as Coors and Carlsberg. "It is a pressure cooker and if we put prices up anymore we may have a riot on our hands."

However, Richard Slade of the Magnesia Bank in North Shields believes bar staff fully deserve the increase.

"If we want bar staff to have certain levels of skill and be professional, we need to pay them accordingly. I pay above the minimum wage and it usually pays dividends. You get more commitment and a better effort. If it means a beer prices rise, then so be it."