Britain's pub industry is sounding the alarm over what they describe as a "vindictive" tax raid that could see alcohol prices climb yet again in Wednesday's Autumn Budget.
Budget blow for drinkers
Chancellor Rachel Reeves is reportedly planning to raise alcohol duty by more than 4 per cent in the Budget on Wednesday November 25, 2025. This would add approximately 15p to the cost of a bottle of red wine and follows a series of cost increases that have already pushed many smaller venues out of business.
From major chains like Wetherspoon to independent local pubs, industry leaders are united in their condemnation of the potential tax increase, warning it could deliver another devastating blow to a sector still recovering from pandemic losses.
Industry leaders voice their anger
Tim Martin, chairman of Wetherspoon which operates nearly 800 pubs across the UK, told Metro: "Pubs and the hospitality industry bore the brunt of the big tax increases in National Insurance Contributions only a few months ago."
He emphasised that increasing alcohol duty would "again affect pubs more than any other industry, when most have not recovered from the pandemic." Martin revealed that Wetherspoon took a £60 million annual hit from employer tax hikes and minimum wage increases in last year's Budget.
The industry veteran highlighted the dramatic shift in consumer behaviour, noting that "pubs have lost half of their beer volumes to supermarkets in the last 25 years." He added starkly: "No industry can survive that level of attrition."
Smaller operators feel the squeeze
Clive Watson, cofounder of City Pub Group who now runs smaller chain Inda Pub Group, didn't mince words, calling the potential increase "piling on more taxes on an overtaxed industry."
"It's becoming vindictive and means higher prices for the consumer," he added, capturing the frustration felt across the sector.
Rox Marjoram, who co-owns five pubs and a wine shop in southeast England, told Metro that raising alcohol duty "penalises everybody in the trade" and that "any increase is going to be bad news for us."
Marjoram, whose hospitality firm Gusto Pronto employs about 140 people, explained the cumulative impact: "We have had to take on so much additional cost as a result of the NICs changes last year. It's one thing after another. We're all paying much bigger bills as a result."
She summed up the current challenging environment: "It is already very difficult for anyone in the sector to make money these days."
Pub closures continue to rise
The potential tax increase comes at a particularly vulnerable time for the industry. According to the Campaign for Real Ale, the country has already seen 901 pubs close down this year alone.
While last year's Budget included an exemption on draught beer that provided a 1p reduction on pints poured in pubs, it remains unclear whether similar measures will be introduced this time around.
The industry now waits anxiously for Wednesday's Budget announcement, fearing that further tax increases could push more beloved local pubs towards permanent closure.
