Stop crying about the cost of beerPosted: February 19, 2011
One of the biggest gripes people complain to me about is the price of a pint of beer and I’m sick of it.
People fail to understand that a 2.5% VAT increase on the top of a pint or 1p on a pint at the budget doesn’t simply mean a 2.5% (or 1p if we are talking about the budget) increase in the cost they pay in the bar.
The hospitality trade has to pay 2.5% vat on every single thing needed to provide you with that pint of beer, heat, light, barware, rent, cleaning products, the list is endless.
A 1p cost on the pint of beer at the budget, is 1p on the barrel price, not the actual price you pay.
In real terms,
A 2.5% increase in VAT results in a 10p rise in the price of a pint
A 1p increase in the cost of a pint at the budget, results in 5p-6p on the price you pay
Last year, in Northern Ireland the average price of a pint of beer was £3.00 and the average profit per pint was reduced to an all time low of 13p………. still think you are being ripped off?
Many pubs and hotels have done their upmost to absorb recent increase’s but with the disastrous weather in Q4, the hospitality trade in Northern Ireland was hit hard. Hotels and bars have had to apply price rises or risk their business failing.
Speaking on this, Colin Neil, Chief Exec of ‘Pubs of Ulster’ The trade body says.
“Unfortunately this is another instance where pubs fair worse than supermarkets, which still retain the margins to absorb the VAT increase whilst selling alcohol below cost. We hope that the coalition government’s plans to introduce minimum pricing in England and Wale and the upcoming consultation on a minimum price for alcohol in Northern Ireland will lead to an end to the pub industry being unfortunately penalised with disproportionate taxes. However current proposals to not go far enough and we call upon the Assembly to lead the way and set an effective minimum price for alcohol in Northern Ireland.”
If you want to see your local bar continue to be there for you in the future, pay a fair price for alcohol and please, please stop crying about the cost of beer……… no one is making you drink it!