Pub Forced to Hike Prices 20% and Cut Hours Over Labour Budget Rules
Pub hikes prices 20% due to Labour budget rules

A Gloucestershire pub landlord has issued a furious warning after being forced to raise drink prices by 20% and slash opening hours, blaming the Labour government's Autumn Budget for a 'war on business'.

'Crippling' Tax Demands Force Drastic Action

Wesley Birch, the 41-year-old landlord of The Ship Inn in Brimscombe, said he had 'no choice' but to implement the steep price increases and reduce trading times. The drastic measures are a direct response to what he calls 'crippling' new fiscal demands from Chancellor Rachel Reeves.

Birch revealed the pub's business rateable value is set to skyrocket from £8,000 in 2025 to £31,750 in 2026 – a near 300% increase. Combined with other rising costs, the financial burden has become unsustainable.

Perfect Storm of Rising Costs

The landlord detailed a cascade of financial pressures hitting his business simultaneously:

  • The minimum wage for under-18s, which accounts for half his workforce, rose by 24% from April 2025 to 2026.
  • National Insurance contributions increased by around £11,000 this year.
  • Staff numbers have already been cut from 75 to 48, with further reductions to 40 planned by April 2026 to ensure viability.

'We were hoping for some form of relief in the hospitality sector but what we received was a demand for more money,' Birch stated. 'We have absorbed every cost increase possible... However, without this increase, our beloved community pub would no longer be a viable business and would face liquidation.'

Industry Backing and a Plea for Support

The pub's plight has drawn support from industry leaders. Emma McClarkin, Chief Executive of the British Beer and Pub Association (BBPA), condemned the Budget, saying: 'Once you cut through all the warm words the cold hard truth was that this Budget let down pubs all across the country.'

Birch, who hasn't increased prices for two years, apologised to customers for the inconvenience but said the adjustments were 'vital to securing our future'. He expressed gratitude for loyal community support, concluding: 'Hopefully there is better news ahead.' The changes at The Ship Inn serve as a stark indicator of the mounting pressures facing the UK's hospitality sector under new government fiscal policies.