A combination of soaring taxes, rising business rates and increased National Insurance contributions is forcing London publicans to push pint prices past the £10 mark for the first time, according to industry campaigners. The Campaign for Real Ale (Camra) has warned that government policy is directly to blame for the escalating cost of a pint, with publicans facing what it describes as “extreme financial pressures” that leave them no choice but to raise prices or close permanently.
Ash Corbett-Collins, Camra’s chair, said: “It’s not surprising pint prices are rising across London and the UK, but our pubs and breweries should not be blamed. Extreme financial pressures from the Government are forcing publicans to either raise their prices or consider closing for good.” The organisation is calling for fairer business rates, an energy price cap for hospitality and a cut in VAT on food and drink served in pubs, arguing that current policies are “pricing people out of the pub.”
How government policy drives up the price of a pint
The tax burden on a typical pint is substantial. Approximately £1.30 to £1.50 of every pint sold goes to the Treasury through alcohol duty and VAT, meaning that for every £3 spent in a pub, £1 goes to the taxman, according to the British Beer & Pub Association (BBPA). That body has called for urgent government action to halt what it describes as “completely avoidable” pub closures.
Business rates have been a persistent source of pressure. While the government announced a 15% cut to business rates bills from April 2026, followed by a two‑year freeze, industry figures argue that the relief does not go far enough and that many pubs could still face increased bills under future reforms. Meanwhile, the recent rise in employers’ National Insurance contributions has added further to the cost of staffing, a significant expense for pubs already operating on razor‑thin margins.
Energy costs have also soared. Some publicans have seen their monthly bills jump from £1,200 to £3,500, a rise that directly affects the price of a pint. These increases come on top of broader inflationary pressures: UK inflation hit 3.3% in the year to March 2026, driven by higher motor fuel and food prices, and pubs are particularly exposed because of their reliance on food, drink and transport supply chains.
Wholesale price hikes from major suppliers have compounded the problem. Diageo, the parent company of Guinness, raised its wholesale price by 5.2%, adding around 4p to the cost of each pint. The combined effect of inflation, energy, supply chain disruptions – exacerbated by Brexit and global events – and government levies has created what trade bodies describe as a “perfect storm” for the industry.
London’s pint prices: from average to eye‑watering
The impact of these pressures is visible across the capital. As of March 2024 the average pint price in London was £5.59, a figure that includes cheaper establishments such as Wetherspoons. In the City of London the average rises to £6.51, and it is now common to see pints above £6, with some reaching £7 or more. By May 2025 the average draught pint in the UK was £5.17, but London publicans commanded £6.10 on average, with a Guinness costing £6.45 and a Birra Moretti £7.17. The Office for National Statistics and data provider CGA by NIQ track these trends.
At the luxury end, the £10 pint has become a reality. Stanley’s rooftop bar in Mayfair charges £11 for premium draught options and £10 for a Guinness. The Connaught hotel in Mayfair sells 33‑centilitre bottled options for £10.50, while Claridge’s charges £10 for bottled lager. Even non‑alcoholic drinks at these venues can exceed £10: fresh fruit juice at The Connaught costs £13 and bottled water £10.50. The most expensive pint ever recorded in London was an Aspall Cyder priced at £9.50 from Baccarat Bar in Harrods.
The wider cost: pub closures and changing habits
The financial strain is driving a relentless wave of closures. Over the past 25 years, 15,800 pubs have shut across the UK. In 2025, one pub a day closed in England and Wales, with nearly 2,000 pubs disappearing in the last five years. In 2024 there were 289 closures across England and Wales, resulting in more than 4,500 job losses, while London recorded a net loss of 1% of its pubs. The BBPA warns that without urgent intervention the trend will continue.
Consumers are also cutting back. Nearly half of pubgoers now visit less often because of the rising cost of living, according to industry surveys. This creates a vicious cycle: as prices rise, demand falls, further squeezing pub revenues. To cope, some publicans are shifting towards higher‑margin food offerings and premiumisation – craft beers, cocktails and spirits – a strategy that can alienate traditional drinkers and alter the character of the local pub.
UKHospitality, the trade body for the sector, has warned that pubs, restaurants and hotels may be forced to raise prices further as inflation persists, and has called on the government to reduce the cost of doing business for demand‑sensitive sectors. The government has introduced licensing reforms and business rates relief, but MPs and industry bodies argue that these measures are insufficient to halt the tide of closures and price rises. For the millions of Britons who rely on their local pub as a community hub, the £10 pint is not just a headline – it is a warning that the institution itself is under threat.
