Pint prices to rise despite beer duty cut as brewers struggle with the Chancellor's budget tax hikes

Pint Prices Expected to Rise Despite Beer Duty Reduction

Despite recent government announcements of a beer duty cut, pub patrons may not see prices decrease, as brewers contend with a range of tax increases implemented by the Chancellor.

Brewers Confront Escalating Expenses

Shepherd Neame, recognized as Britain’s oldest brewer with a history spanning back to 1698, has reported that it is grappling with an additional £2.6 million in annual expenditures. This surge in costs is attributed to impending increases in National Insurance contributions and the national minimum wage, scheduled to take effect next month.

The Kent-based brewery, known for producing brands such as Spitfire, Bishops Finger, and Whitstable Bay, has indicated its intention to counterbalance the majority of these amplified costs through a combination of price adjustments and efficiency measures over the subsequent 18 months.

Jonathan Neame, Chief Executive of the company, voiced concerns stating, ‘The supplementary expenses imposed on our industry are particularly unwelcome.’

Financial Overview

Shepherd Neame, which operates 290 public houses, disclosed that its turnover experienced a 4.5 percent decrease, reaching £85 million in the six-month period leading up to late December. However, the company’s profits demonstrated resilience, climbing by nearly 10 percent to £4.2 million during the same timeframe.

Comedians Ben Miller and Alexander Armstrong pictured in a Shepherd Neame establishment. The brewery reports facing an additional £2.6 million in annual costs due to increases in National Insurance and the minimum wage.

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