On average, struggling locals are paying eye-watering sums to the taxman, according to new data from the Taxpayers' Alliance.
They found that taxes account for 28 percent of the average pint, and 29 percent of the average glass of wine.
When the taxes on beer, wine, and spirits are totaled up for the average pub, it amounts to taxes of £96,140.
And they say if the cost of a pint of beer had risen in line with RPI inflation since 1989, it would be £1.14 less on average than we’re paying now.
That works out to around £200 more a year for the average customer.
Self-employed Brits have just weeks left to submit tax return or risk £100 fine
Alcohol duty has been frozen on and off over the last few years, but Britain has some of the highest duty rates in Europe.
But LBC revealed last week that the Treasury is considering another inflationary hike to duties - which would put even more pressure on pubs.
We reported how campaigners and MPs are lobbying the Chancellor to keep it frozen to try and ease pressure on Britain’s much-loved drinking establishments.
The Taxpayers' Alliance also says that pubs are being hit from every angle - with the average business rates bill set to rise from £3,938 to £9,451 this year, thanks to Covid-relief ending.
There are plans to introduce a permanently reduced rate in 2026-27 for hospitality firms, but pubs are still waiting for clarification on what that will mean and how much they will pay.
The impact of the National Insurance rise on employers is also affecting hiring decisions.
They say that the average cost of hiring a full-time employee on the minimum wage is more than £2,300 more expensive than last year’s budget.
And the average pub is facing an energy bill of £13,264 a year as prices remain high too.
Elliot Keck of the team who did the research, told LBC it was another symptom of the "cost of drinking crisis", pointing out that 209 pubs closed in the first 6 months of 2025.
He said: "Government policy on energy taxes and also employment have added significant costs to the hospitality industry and particularly to pubs in recent years. They’ve been hit hard by increases in the minimum wage, increases to national insurance for employers, and of course, the cut to the threshold at which employers pay.
Thousands of parents have just weeks left to check Child Benefit or risk fine
"And also the costs, the spiraling costs of energy, with the UK having the highest energy costs in the developed world.
"But one of the most significant costs on pubs, and a cost that is directly on pubs rather than on the economy as a whole, which affects pubs, is, of course, alcohol duty.
"Alcohol duty is a tax on the price of a pint, the price of a glass of wine, spirits, and cider. And it has increased significantly in recent years.
"And as a result, we estimate for the first time that a pub, the average pub in Great Britain, will pay £100,000 in taxes on alcoholic drinks.
"And the result of that for the customer is that they are spending hundreds of pounds more on just a pint, just pints of beer, than if the cost of a pint of beer had gone up by inflation since 1989, we estimate is £248 more per year than if it had gone up by CPI.
"And that’s because a huge amount of the price of a pint of beer, about 28% comes from alcohol duty."
Researchers Say Reducing The Measure Of A Pint Of Beer In The UK Could Improve Public Health.
A spokesperson for the BPPA said: "Brewers and pubs are up against corrosive taxes and regulations which put the brakes on growth and jobs – the opposite of the government’s growth mission for the UK.
"When pubs and breweries close it’s not just workers who suffer – it’s the families who rely on those wages, the local high street which faces another shuttered door, and the communities who rely on them for vital connections and a place to gather.
"Lots of pub closures are preventable – but given most of the money that goes into the till goes straight back out in bills and taxes, many find it impossible to make a profit - which all too often leads to them closing the doors.
"This means we can’t deliver the government’s growth mission, and it’s the economy, workers, and communities who suffer.
"Next week the Government has a once in a generation opportunity to reset things for the better. The Chancellor must use the 2025 Budget to deliver meaningful business rates reform, cut beer duty and VAT, mitigate soaring employment costs, and review packaging regulations costs."
A Government spokesperson said, “Pubs are vital to local communities, that’s why we’re cutting the cost of licensing, lowering their business rates and helping more hospitality businesses offer pavement drinks and al fresco dining, on top of cutting alcohol duty on draught pints and capping Corporation Tax.”
Read more similar news:
Comments:
comments powered by Disqus
