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Cost of living crisis: Pubs and bars set to hike prices 11% amid spiralling costs
5 February 2022, 02:00 | Updated: 5 February 2022, 02:10
Several pubs and bars across the UK are set to hike their prices by 11 per cent due to soaring costs.
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It comes amid the ongoing cost of living crisis, which has resulted in surging energy prices as well as increased national insurance contributions being introduced in April.
Hospitality firms said they needed to lift prices as a result of the changes, having witnessed double-figure increases in energy bills, labour, food and drink prices and insurance costs.
VAT on food and soft drinks is soon set to return to 20 per cent too, and there will be an increase in business rates in April.
Around 93 per cent of businesses in the industry said they planned to increase customer prices, according to a survey of 340 operators running 8,200 venues by trade body UK Hospitality.
The data revealed that firms predicted an average of 11 per cent price rises to offset the costs.
Surveyed businesses told the trade body that energy costs particularly hit them hard, with companies facing an average cost surge of 41 per cent.
Kate Nicholls, chief executive of UK Hospitality, said: "Omicron has infected the start of 2022 with lower-than-expected trading levels and higher than expected cancellations in hospitality venues.
"One in three businesses in our sector have no cash reserves left and are already carrying heavy debt burdens.
"Many of our community pubs, restaurants, hotels and hospitality venues will therefore fail as the cost-of-living crisis bites, causing demand to falter.
"This can only cause the UK's wider economic recovery to stutter."
It comes after Chancellor Rishi Sunak unveiled support for Brits on Thursday to deal with an increase to the energy price cap also coming into force in April.
The package included: A one-off £200 discount on bills, a £150 council tax rebate for those with properties in bands A-D and a discretionary fund of £150 million for local authorities to "help those lower income households" who may live in higher council tax properties, or who are exempt altogether.