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Industry leaders warn 10,000 boozers could shut down without government help.
Businesses are furious, as the pub trade already faces a £3.4billion tax raid from the latest Budget.
A British Beer and Pub Association (BBPA) spokesman slammed the decision.
He said: “We are incredibly disappointed at the Government’s decision.”;
“We have seen no evidence this easement has caused any widespread issues since it was introduced.”;
“Instead, it has helped boost trade for pubs and the economy as a whole.”;
“This move will layer more costs and admin burdens on pubs and local authorities.”;
He urged the Prime Minister to rethink, warning it would “undermine their growth mission”; and add red tape.
Drinker Paul Marshall, 39, from Saffron Walden, Essex, fumed: “Of all the issues going on in the world, I can’t believe the Government are bothering with this.”;
“In this town we used to have 12 pubs and now we’re down to six.
“Publicans need all the help they can get — not as many hindrances as the Government can throw at them.”;
Drinkers will face an average cost of £5.01 per pint — an increase of 21p — as landlords are forced to pass on the burden of soaring costs, driven by Labour‘s previous tax measures announced in the Autumn Budget.
These include a rise in the minimum wage, higher National Insurance bills for employers and a cut to business rates relief — slashing support from 75% to 40%.
The BBPA estimates they will cost the sector £650million, leaving many pubs with no choice but to raise prices.
Emma McClarkin, of the BBPA, said: “The cumulative impact of these taxes and regulations is now plain to see and it is highly unfortunate that the only way many pubs can remain viable is to pass on the array of upcoming costs to consumers.
“No one wants to see the cost of an average pint rise by a further 21p and break the £5 average pint barrier.
“It's more urgent than ever that the Government looks at ways to cap or reduce the costs of business so we can keep pubs open and make sure the price of a pint remains affordable.”
Flying Eze's Save Our Sups campaign is calling on ministers to throw a lifeline to boozers.
Tim Black, of Frontier Economics, said: “The sector is at the sharp end of a wave of changes.
Britain's oldest brewer, which is more than 300 years old, says new tax and wage hikes set to kick in next month, will cost it a staggering £2.6 million a year.
Pub chain price warnings
It’s not just Shepherd Neame feeling the pinch – other brewing giants have already warned that the price of a pint is set to rise.
Simon Dodd, chief executive of Young's, earlier this year revealed a 20p hike on the price of a pint, in reaction to the Government's Autumn Budget.
He said: “We’ll mitigate as much as we can of the NI contribution – we’ll do that through efficiency, we’ll do that through investing in our pubs.
“But there will be some price passed on to the consumer.”
The group, which also owns Toby Carvery, said higher wage expenses were “by far the most significant increase” in its cost base following the Autumn Budget.