British pubs are poised to raise the price of food and drinks after measures announced in the Autumn Budget, Brits have been warned. According to a new landlord survey commissioned by the British Institute of Innkeeping, 90% of the 205 respondents said they would increase drinks prices.

Another 71% said they would increase food prices, 45% planned to cut opening hours, and 41% might cut services. The survey was conducted after Rachel Reeves Autumn Budget, and ahead of a raft of new business rate tax increases next year. A spokesperson said last week’s responses have “just been devastating” compared to previous member surveys.

From April 2026, retail, hospitality and leisure relief will be replaced with two lower business rate multipliers for properties with rateable values below £500,000. The lower tax rates will be funded by a higher multiplier applied to all properties with a rateable value of £500,000 or above.

To help the businesses facing the more significant bill hikes from this measure, the Government will be implementing a ‘Transitional Relief’ to cap the amount that bills increase as part of a £4.3billion support package.

But according to UKHospitality, the move will still see an average pub pay £12,900 more in business rates over three years, with rates climbing by 76%. A firm’s rateable value is based on the cost of renting its property for a year and is used to calculate a business’s rates bill.

Ms Reeves also announced an inflation-linked rise in alcohol duty and another increase in the National Living Wage.

In April, the hourly wage for workers aged 21 and above will increase by 50p to £12.71. Workers aged 18-20 will see an 85p increase to £10.85, while those under 18 and apprentices will receive a 45p raise, bringing their pay to £8 an hour.

Fewer than one in 10 respondents said their pubs would be profitable after the changes take effect next year, down from one in three, the group said.

Phil Thorley, who runs Thorley Taverns in Kent, said he was considering increasing the price of pints at his pub by 5 per cent to offset a £62,000 increase in business rates.

He said: “It just feels like another nail in the coffin of the British pub. It’s setting up a tsunami of costs that are hitting us and are simply impossible to pass on to the consumer.”

Since the start of the COVID-19 pandemic in 2020, the number of pubs in the UK has decreased by more than 2,000 to fewer than 39,000, according to Government data released at the end of last year.

A Treasury spokesman said: “We’re protecting pubs, restaurants and cafes with the Budget’s £4.3billion support package. Without this support, pubs would face a 45pc increase in the total bills they pay next year.”

The pound has plummeted against the Euro in a sign financial markets are not reacting too kindly to the Autumn Budget announcements from Rachel Reeves.

Pound Sterling has plunged 0.4 percent percent against the euro so far today having started at €1.2025, according to the BBC, citing Morningstar.

But it nosedived sharply at around 8am as the financial markets open, falling to as low as €1.1968 at around 12.45pm – minutes after the Chancellor began her Budget speech.

Despite recovering substantially over the following 90 minutes to just above €1.20, it quickly plunged again to €1.1975 at around 3.30pm.

READ MORE: Rachel Reeves’ ‘insulting and disdainful’ snub to pensioners at budget slammed’

In slightly better news, the pound has been more stable against the US dollar, bouncing back to around $1.3030.

Reeves announced a £40 billion tax increase in her budget to address gaps in public spending.

This includes raising employer National Insurance contributions from 13.8% to 15% and higher taxes on inheritance and luxury items.

The funds are supposed to be used for areas like the NHS, housing and green energy projects.

However, some experts believe these tax hikes may push the Bank of England to adjust its interest rates.

The Office for Business Responsibility (OBR) also raised its inflation forecast to 2.5% meaning prices may stay higher for longer, which could influence the Bank’s upcoming decision on rate cuts expected on November 7.

On the investment front, financial adviser Brian Byrnes from Moneybox stressed the need for savers to take advantage of tax-free savings accounts like ISAs, explaining that “higher taxes make it crucial to save smartly.”

And, as markets digest the Autumn Budget, traders are also keeping an eye on the Bank of England’s moves and upcoming economic data from the US, which could impact the pound’s value against both the euro and the dollar.

With everything that’s gone on today, Conservative MP John Redwood criticised Labour’s approach, saying: “The Labour government is choosing to tax rather than encourage growth, which could have long-term impacts on our currency and economy.”

A key survey has cast a warning over the UK economy’s growth prospects as Rachel Reeves is just weeks away from presenting her autumn budget.

The recently unveiled ‘flash’ purchasing managers’ index (PMI) dipped to 52.9 from September’s reading of 53.8, sitting comfortably beneath the anticipated figures. Notably, it marked the lowest PMI score in two months.

Still, remaining above the pivotal 50 no-change threshold, the economy continues its expansion streak for an eleventh successive month.

According to the survey, slower growth was recorded within both services and manufacturing industries; however, both sectors are still expanding.

“Where higher levels of output were reported, survey respondents mostly commented on rising customer demand and improving domestic economic conditions. Meanwhile, fragile client confidence and ongoing inventory cutbacks were cited as headwinds to growth in September,” noted the report, as reported by City AM.

Despite these signs of deceleration, Chris Williamson, chief business economist at S&P Global Market Intelligence, encapsulated the findings as “should not be seen as too concerning”.

He further articulated that the survey aligns with predictions of GDP growing at a quarterly pace of 0.3 per cent, which correlates with the Bank of England’s projections from August.

The economic assessment also highlighted another strong month for new business, predominantly propelled by the service sectors increasing orders.

While business optimism persists due to the progressively brighter economic forecast, Williamson hinted that nervousness regarding the imminent budget remains palpable.

“Investment plans in particular are reported to have been put on ice pending clarity on the new government’s policies, especially towards taxation. Hiring likewise has been stifled by business uncertainty about the near-term economic outlook ahead of the ‘budget’,” he remarked.

Clients are also adopting a ‘wait-and-see’ stance regarding pivotal decisions before the fiscal announcement.

Most analysts agree that the survey points to a gradual deceleration in economic growth throughout the latter half of the year, following the UK’s unexpectedly robust performance at the start.

“The fall in September’s composite flash PMI is not a sign that the economy is on the cusp of another downturn, but instead is further evidence that real GDP growth has slowed towards a more normal rate in Q3 after the burst of growth in the first half of the year,” commented Alex Kerr, a UK economist at Capital Economics.

The survey further revealed signs of easing inflationary pressures, with the rate of prices charged inflation dropping to a 42-month low, primarily due to lessened pressures in the services sector, which has been a focal point for policymakers concerned with interest rates.

A number of respondents from the survey indicated that severe competitive forces were limiting their ability to raise prices.

Nevertheless, there was a marginal uptick in input price inflation, attributed to increased shipping costs and rising wages. In the manufacturing domain, the inflation rate for purchase prices hit its peak since January 2023.

The UK’s most recent survey was published shortly after PMIs for the German economy revealed a quickening downturn, with businesses slashing jobs at the fastest pace in over 15 years, excluding the pandemic period.

“The downturn in the manufacturing sector has deepened again, evaporating any hope for an early recovery,” stated Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.