An Islington pub landlord has criticised October’s Budget, warning that rising costs will put further pressure on already shrinking profit margins.
Brendan Dee, owner and landlord of the Britannia on Ironmonger Row, said that while “the dust needs to settle” before the Budget’s full impact can be assessed, his initial reaction was one of “disappointment”.
“It’s not just 2p on the pint,” he said. “Prices will go up everywhere. Our suppliers will increase their prices and our margins will keep getting smaller.”
For pub owners across London, the Budget will bring some promise of financial relief in the future, but mounting costs and financial uncertainty in the short term.
Chancellor John Healey’s Autumn Budget offered support for pubs, but higher operating costs and increased alcohol duty threaten to squeeze margins in an already struggling sector.
Healey revealed changes to business rates for qualifying pubs in England, increasing relief from 15 per cent to 35 per cent from 1 April 2027. The Chancellor also announced a real-terms freeze on bills for retail, hospitality and leisure venues in 2027-28 and 2028-29.
While these measures offer some longer-term relief, publicans remain concerned about the short-term threats posed by a roughly 2p increase in duty on an average pint and rising labour costs following an increase in the National Living Wage, which will rise to £13.21 an hour from April 2027.
Dee said: “There was a lot of noise when he [Prime Minister Andy Burnham] got in, but he has not delivered.”
Dee expects costs to rise across his supply chain as businesses across the sector adjust to higher staffing costs and increased alcohol duty.
Like many independent publicans, Dee is faced with the challenge of balancing profitability with affordability for customers at a time when household budgets remain stretched.
Photo: “London Pub” by Alexander.Hüls is licensed under CC BY-SA 2.0.
Alfie Franklin is an MA Journalism student at City St George’s. He has previously written for The Knowledge about politics and culture.