PUBS and restaurants are set to hike prices by as much as 11%, and it’s all because of the cost of living crisis.
Brits have been crippled by soaring costs across the board, with some having to make the choice between heating and eating – and now it’s even at their local they’ll feel the pinch.
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Prices have gone up in the supermarkets, energy bills are due to rise further, and Brits are expected to fork out more on National Insurance tax in April.
Just yesterday, it emerged that the energy price cap in place to stop households from being ripped off would escalate to £1,971 a year, coming into effect from April 1.
The rocketing prices have even managed to cripple over 30 energy firms since the crisis began.
But the hospitality sector hasn’t come out unscathed by rising costs either.
Around 93% of hospitality businesses have said they plan to increase customer prices, according to UK Hospitality.
Bosses have seen double-figure increases in their own energy bills, labour, food and drink prices and insurance costs.
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They’re also about to face VAT rises on food and soft drinks from 12.5% to 20%, and witness an increase in business rates in April.
That means we’ll see an average of 11% rise in the price on the pub or restaurant menu to offset the soaring costs.
It comes just as the hospitality industry attempts to claw back from a “devastating” Christmas period after Omicron cancelled plenty of festive plans down the pub and more.
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.”
For everyday Brits, the government has promised to step in and help.
Chancellor, Rishi Sunak, yesterday announced a package of up to £350 to help Brits through the energy bills crisis.
There’s set to be a £200 discount for all electricity customers, which will be paid in £40 a year instalments for the next five years, starting in April.
Plus a £150 rebate for homes in lower council tax bands A – D, and will not need to be repaid.
But he also warned price hikes are something “we will have to get used to”.
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