Price of a pint rises 15p major pub boss reveals due to Chancellor's tax hike
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THE boss of a major pub chain has revealed it hiked the price of pints by 15p following a Government tax raid.
The chief executive of Fuller's said the group upped the price of a pint of beer after being hit with £8million in extra costs.
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Simon Emeny has said it upped the price of a pint by 15p in March
Credit: PA
Simon Emeny, boss at Fuller, Smith and Turner, said the firm bumped up prices at the end of March ahead of an increase in employer National Insurance contributions (NICs) and the national minimum wage in April.
Mr Emeny told the PA news agency that Fuller's had looked to be 'sensitive' with price increases and would keep them "under review" for the rest of the year.
It comes after he exclusively told The Sun prices would likely rise by 10p to offset its added costs.
The pub chain is one of a number who warned of price rises to tackle higher NICs and wage costs.
The British Beer and Pub Association (BBPA) recently said the average price of a pint of beer would surge past £5 for the first time because of cost hikes hitting the sector.
The BBPA said the average cost of a pint in the UK is expected to rise by about 21p as a result.
Emeny said the pub group could not offset the cost impact of the NIC and minimum wage hikes with just price increases.
The group, which has about 5,500 staff, is doubling down on investment in its bars and staff training, to drive sales higher, which it hopes will counter the extra costs.
'Six months down the line and I don't think price increases are the only answer. It has to come through higher sales,' he said.
But he said the consumer spending outlook would be sensitive to the interest rate outlook, and whether the Government moved to increase personal taxes.
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The comments came as Fuller's posted a 32% jump in underlying pre-tax profits to £27 million for the year to March 29.
Like-for-like sales rose 5.2%, and the group said growth had continued into the first 10 weeks of the new financial year, albeit at a more muted rate of 4.2%.
It also announced that its chairman of 18 years, Michael Turner, a member of one of the three founding families, will retire at the group's annual general meeting in July, after a 47-year career with the group.
He will be replaced by Mr Emeny, who will become executive chairman, the first person to take the role who is not a member of the founding families.
Fred Turner will be promoted from retail director to chief operating officer.
A number of other founding family members remain on the board, including non-executive directors Sir James Fuller and Richard Fuller.
On his final set of full-year figures for the group, the outgoing chairman said it had been an 'excellent' past year.
Mr Turner added: 'This strong performance has been achieved despite the business operating in a challenging and, at times volatile, economic environment.
'The geopolitical situation has caused uncertainty in global markets and the decisions made by the Chancellor in her October budget hit the sector hard and reduced confidence in hospitality stocks.'
An outspoken critic of the move to raise National Insurance contributions (NICs) from April, Mr Turner said: 'The changes to national insurance contributions took everyone by surprise and I fear it could be terminal for a number of smaller operators in our market."
What are employer National Insurance contributions (NICs)?
CONSUMER reporter Sam Walker tells you everything you need to know.
Employer National Insurance Contributions (NICs) are effectively a tax on businesses used to cover social security benefits like Universal Credit and the state pension.
NICs are also paid by workers and the self-employed.
According to the Institute for Fiscal Studies (IFS), NICs are the UK's second-biggest tax, expected to bring in around £170billion this financial year.
Employers only pay NICs on workers' salaries from a certain threshold. This is currently £9,100 but will drop to £5,000 from April 6.
Those of state pension age or older do not have to pay NICs, but employers with workers aged 66 or older have to pay NICs on their earnings.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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