It’s more than Dry January — the UK is getting drier for F&B businesses

The new year is already looking difficult for pubs and bars across the UK.

On Monday, the UK Government announced plans to lower the drink-driving limit in England and Wales as part of a new road safety strategy.

But pub landlords have been quick to push back. Following a protest across the country last month — in which over 250 venues barred Labour MPS from their doors in response to increasing business and VAT rates — business owners are now concerned that this latest proposal could further strain an already struggling industry.

This revelation also comes shortly after the Government’s announcement to increase alcohol duty rates, adding even more to the cost of running a pub or bar.

And with the Dry January challenge in full swing alongside more customers opting for low and no alcohol options on a long-term basis, pub culture is set to keep changing this year. 

Lower drink-driving limit raises concerns for pubs

Under its new road safety strategy — which aims to reduce deaths and serious injuries on the road by 65% to 70% by 2035 — the Government has proposed to reduce the drink-driving limit in England and Wales.

Currently, the drink-driving limit is 35 micrograms of alcohol per 100ml of breath — the highest in Europe alongside Malta. If the new strategy is enforced, this could be lowered to 22 micrograms.

“We don’t want to stop people from going to the pub and having a great night out,” transport minister Lillian Greenwood told Times Radio. “What we’re saying is don’t take your car.”

However, pub landlords have criticised this proposal, raising concerns that it could significantly reduce trade, particularly for community and rural pubs. 

Guy Richardson, owner of The Bright Star in Peters Green, Hertfordshire, calls the crackdown “bizarre”, and says that running a pub is already “impossible” in today’s economy.

“I think they’ve collectively just built up the emphasis of getting rid of pubs altogether, if I’m honest with you,” Richardson told GB News.

Rising alcohol duty rates pile extra pressure on pubs

The Government’s new proposal is yet another blow to an already struggling sector, coming just two months after its announcement to increase alcohol duty rates.

Following the 2025 Autumn Budget, the Government confirmed that all alcohol duty rates will rise by 3.66%, in line with Retail Price Index (RPI) inflation, from 1 February 2026.

As expected, this decision was met with backlash from pub owners and other hospitality businesses, with The Night Time Industries Association calling it a “hammer blow” to the economy.

Breweries have also expressed concerns over how they’re going to charge their business clients with these new rates.

Harry Benbow, brewer and Director at Oxfordshire-based brewery LoveBeer, told ITV News that the increase in alcohol duty is not a cost the business can easily pass on.

“Most pubs just cannot take any more increase on the price we charge them,” he said. “We just can’t compete with the big companies on price.”

Low-and-no alcohol drinking is reshaping pub culture

Beyond new Government plans and proposals, pub businesses are also feeling the impact of changing attitudes towards drinking, as growing numbers of people opt for low or non-alcoholic alternatives.

The Dry January challenge — which was introduced in 2013 by Alcohol Change UK to encourage people to give up alcohol at the start of the year — has long affected sales during this period. This year, almost a third of UK adults are planning to take part, committing to a 31-day break from alcohol.

However, a survey from The Portman Group and YouGov suggests that going alcohol-free has gone beyond the Dry January season. According to the survey, a third of UK adults (33%) reported not drinking alcohol at all, while 36% said they consume low or no alcohol products either regularly or occasionally. 

But while this change in preference can affect alcohol sales, it isn’t necessarily bad news for pubs. For example, following a campaign from The University of York that encourages low-alcohol or alcohol-free options, pub landlords say business hasn’t suffered from customers opting for these alternatives.

Ryan Moulder, Director of bar and coffee shop Fossgate Social said that pubs and bars have had to adapt to changing customer expectations, but that the results have been positive.

“Venues like ours have had to become more worthwhile with events, unique atmosphere, and a high quality offering to attract customers,” Moulder told The BBC. “So, I’d say the quality in terms of drinking establishments has increased, and there are certainly less issues with drunk and disorderly behaviour.”

Discover the ales and ails of hospitality

Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

Read Whining and Dining