Harper Inns managing director Joe Harper, whose company operates the Earl of Strafford in Hooton Roberts, South Yorkshire, told The Telegraph the combined impact of the changes could lead to the steepest price increases since the pandemic.
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Harper estimated the measures would add around 5p to the wholesale cost of a pint for his business, potentially translating into a 20p to 25p increase at the bar.
He said: “In real terms, a 5p increase to us is a 20 to 25p increase across the bar.”
During last week’s Budget, the Chancellor confirmed a 4.5% rise in alcohol duty from February 2027 alongside a 3.9% increase in minimum wage rates from April, although qualifying pubs will receive additional business rates relief.
Rising costs
Harper estimated the wage increase alone would add £70,000 to his group’s annual costs, while the Earl of Strafford already faces annual energy bills of £78,000 before VAT.
He warned the cumulative pressure was becoming increasingly difficult to absorb or explain to customers.
Other pub operators have also warned of price increases.
Admiral Taverns chief executive Chris Jowsey told The Telegraph beer prices could rise by around 20p over the next six months as higher taxes and operating costs feed through to customers.
Young’s chief executive Simon Dodd also confirmed the group intends to increase prices alongside the February duty rise, with changes determined on a pub-by-pub basis.
Dodd welcomed the Budget’s business rates support but expressed disappointment over the absence of a hospitality VAT reduction.
The warnings follow criticism of the Chancellor’s post-Budget pub appearance, during which he was filmed downing a pint at the Two Chairmen in Westminster.
Harper said he would welcome the opportunity to meet Healey at the Earl of Strafford to discuss the pressures facing pub operators.
