21:17 GMT23 January 2021
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    Beer holds a special place in British pub culture, however it looks like many UK beer drinkers will be disappointed at the cost of a pint, as it is about to increase due to Brexit.

    Inflation is looming around the British pint, as two major brewers have had to announce that they will be rising the price of their beer due to Brexit. Top brewers Heineken and Carlsberg have become the latest beer makers to state that they will be increasing the price of their pint. 

    This price increase follows the warning by toy manufacturers, including Lego and Lego and the producer of Peppa Pig merchandise, that prices could rise by 15 percent due to the pound plunging. 

    So what has caused the beer price increase apart from the decreasing value of the pound? One reason being given by brewers is that of high labour costs: as a result of the national living wage introduced in 2016, both Heineken and Carlsberg said they were left with no other option but to pass on the increased costs to consumers.

    ​Carlsberg said that it was simply responding to significant "cost challenges" and as a result had to increase the price by 2.6 percent on average. Heineken followed suit and said they would also be putting the cost of their beer up.

    Brigid Simmonds, who is the chief executive of the leading body representing Britain's brewers and pub companies, the British Beer and Pubs Association (BBPA), said that increases in the cost of beer could get higher if the pound, which has fallen by 18 percent against the dollar since the EU referendum, remains low.

    "Beer in the UK is made predominantly using domestic raw materials. However, the depreciation of sterling certainly means there will be some inflationary pressures through increased costs such as raw materials, packaging, energy and transport costs as well as employment and other cost pressures all businesses face," Ms. Simmonds added.

    ​In response to the increase in the price of beer, the BBPA is calling for the UK Chancellor, Philip Hammond, to reduce the tax on beer as part of the next budget, they believe that if Britain's pound remains weak the cost of beer could increase significantly, which could be very sad news for Britain's beer lovers. 

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    Tags:
    Beer, pound, price, Brexit, cost, price hike, pressure, inflation, Britain's EU referendum, Philip Hammond, Europe, United Kingdom
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