THE landlord of a popular pub has been forced to hike prices, blaming the “difficult” decision on Rachel Reeves’ budget.
Wesley Birch, who runs the Ship Inn in Brimscombe, Gloucestershire said he would have to shut up shop if he didn’t spike the cost of alcohol and food at the beloved boozer.
In a statement posted on the pub’s social media pages, Wesley said: “This decision is driven entirely by the latest tax demands imposed on the hospitality and beer industries by the government.
“We have absorbed every cost increase possible to maintain the pub you know and love, and to keep our prices as low as possible.
“However, without this increase, our beloved community pub would no longer be a viable business and would face liquidation,” he added.
The watering hole waves in punters from noon until 8pm most days, and from noon until 11pm on Thursday, Friday and Saturdays.
However, to cut costs, Wesley says the pub will now open at 3pm and announce last orders at 7pm for the former, and 3pm until 11pm for the latter.
“Your support means the world to us,” he continued.
“The Ship Inn is more than just a business – it’s a cherished, revived community hub.
“We are truly sorry to have to do this, but it is the only way to ensure the doors stay open for the years to come.
“We promise to continue fighting to keep your village pub alive, vibrant and welcoming!
“Thank you for your understanding and continued loyalty. We look forward to seeing you over the festive season and into the New Year.
“Like many others, we too have been heavily affected by this government’s demands and war on small businesses.
“Another rise in wages and alcohol duty is now too much for us to brunt without changes and sacrifices.
“We were hoping for some form of relief in the hospitality sector but what we received was a demand for more money.
“As we enter the New Year, we are taking necessary steps to ensure the long-term sustainability and continued presence of our business.
“The current economic climate requires us to make pragmatic adjustments so we can move from merely surviving to thriving again in the future.”
It comes as new figures show Treasury alcohol revenue will be £3.9bn lower in 2029/30 than first forecast after the 10.1 per cent duty hike 18 months ago.
Earlier this week, the Chancellor also chose to increase alcohol duty by 3.66%, in line with inflation – which will push up prices in pubs too.
The Wine and Spirit Trade Association (WSTA) said a rise of 3.66% would see duty go up by 11p on a bottle of Prosecco, 13p on a bottle of red wine and 38p for a bottle of gin from February 1.
And it adds 2p of tax on to the price of a pint – and pubs are under pressure to pass this on.
Alcohol duty tax
ALCOHOL duty is a tax applied by the government to alcoholic drinks.
This tax is paid by the manufacturers or importers when the alcohol is produced or first brought into the country.
However, businesses almost always pass this cost on to shoppers, meaning the duty is built into the final price you pay in a shop or pub.
The system is designed so that the amount of tax you pay depends directly on the strength of the drink.
This means that products with a higher alcohol by volume, or ABV, such as spirits and stronger wines, face a heavier tax burden than lower-strength products like beer and cider.
The government uses this tax for two main reasons.
It raises revenue to fund public services and acts as a public health measure by discouraging excessive drinking through higher prices.
