Innis & Gunn boss warns that a single pint could soon cost £10 as pubs pushed to 'brink of extinction'
The brewing boss has warned that pubs are being pushed to brink of extinction.
Pubgoers could soon be forced to hand over £10 for a single pint, a brewery boss has warned, as he called on the government to stop pushing pubs to ‘the brink of extinction’.
Innis & Gunn founder and master brewer Dougal Sharp said the cost of going out has ‘become absurd’ and, without change, £10 pints could become a regular occurrence at pubs.
According to analysis of government statistics, one pub per day closed in England and Wales during 2025. Figures in Scotland for 2024 show there were 56 closures – more than one every week – which is unlikely to have slowed last year, amid growing pressure on the sector.
Mr Sharp, who started his brewing career at Edinburgh’s Caledonian Brewery 40 years ago and founded Innis & Gunn in 2003, said that he had never known a tougher time for the industry. The brewer currently operates three taprooms in Edinburgh and Glasgow, which employ more than 100 people.
He said: “In my four decades in brewing and pubs, I’ve never known it to be tougher. Hundreds of pubs are being forced to close every year across the UK, taking thousands of jobs with them.
“While this is often dismissed as a consequence of ‘market forces’, the reality is far more damaging. Each closure represents lost connections, lost social interaction, and the erosion of community life.”
While some commentators have blamed ‘market forces’ and changing consumer habits for the decline of pubs, Mr Sharp argues that many are being forced to the brink by rising costs – much of which is being driven by government policy. Industry analysis suggests that around one-third of the cost of a pint is accounted for by taxes alone.
He said: “One of the biggest drivers of this decline is cost. The cost of going out has become absurd and a lot of that is to do with the costs being imposed on hospitality businesses. Soon enough, the £10 pint will be a fixture of pubs across the country.
“Hospitality in the UK pays full 20 per cent VAT, while many comparable countries back their hospitality industries with a far lower rate on food. Duties on alcohol are among the highest in the world. Then, there’s business rates, which have become a game of political bingo.
“On top of that, our energy prices are the most expensive in the developed world and some of the regulation brought in for pubs in recent years has been well-intentioned, but a lot is pure bureaucratic theatre.
“Of course we want to pay staff fairly, but the rising minimum wage combined with employer National Insurance contributions adds up at a time when many businesses are already stretched. All these things together turn into reduced hours, fewer staff, less training, less investment, and another ‘To Let’ sign.”
While measures have recently been announced by the UK and Scottish governments to provide support on business relief - such as the 15 per cent non-domestic rates relief outlined in the Scottish Budget for 2026-27 - Mr Sharp says these are nowhere near enough.
Along with other voices in the industry, he is calling for the government to take urgent action to support the industry and reverse its decline, a move, he argues, would do much more than help the industry.
A Scottish Government spokesperson said: “Ministers have long called on the UK Government to address the damaging impact of VAT, duty and employers National Insurance on the sector. It’s clear that these policies are damaging pubs across the country.
“The Scottish Government's Budget 2026-27 continues to support businesses and communities, with a strong non-domestic rates package, including more than £320 million of forecast support through transitional relief schemes and retail hospitality and leisure relief over the next three years.”
A HM Treasury spokesperson said: “We are backing Britain’s pubs – extending World Cup opening hours, increasing the Hospitality Support Fund to £10m to help venues grow, and later this year, we’ll build on our Pride in Place programme with our new High Streets Strategy to revitalise our town centres.
“This comes on top of capping corporation tax, cutting alcohol duty on draught pints and six cuts in interest rates, benefiting businesses in every part of Britain.”
Comments
Want to join the conversation? Please or to comment on this article.