Rising costs “will wipe out booze prices cut”: Industry experts believe that any budget move to lower the cost of drinks will be offset by other increases of up to 30p per pint

  • Chancellor Rishi Sunak called the 3p beer duty cut ‘once per generation’
  • However, pubs expect price increases of between 25p-30p per Pint
  • The beer duty reduction is not due to take effect until February 2023.

Industry leaders dismissed the notion that Britons would save money on beer and fizz because of the Budget changes.

Chancellor Rishi Sunak boasted of a ‘once in a generation’ reduction in the duty imposed on beer and cider sold on draught in pubs and bars.

The reforms were suggested to bring a savings of around 3p per pint, and Mr Sunak argued that this would be a lifeline for community pubs.

The changes won’t take effect until February 2023, and will be overshadowed by rising costs that could add 25p-30p per pint.

Rishi Sunak followed up his beer duty cut announcement with a trip to a London brewery with the Prime Minister

Rishi Sunak, the Prime Minister of India, followed up his announcement regarding a reduction in beer duty by going to a London brewery.

The pandemic has wrought havoc on the hospitality and brewing industries with numerous lockdowns. They now have to deal with severe increases in costs such as transport and energy.

The Budget contained small print regulations that will limit the impact of the reductions in duty on draught beers and cider sold in kegs, casks, or bottles containing at least 40 L.

Most craft breweries and pubs use 30 litre containers. This means that they miss out on the price reduction.

The Budget included changes and Boris Johnson and the teetotalChancellor took to the streets in a publicity stunt at the Fourpure Brewing Company in Bermondsey, London, to highlight them.

Pub face imminent price hikes before the February 2023 reduction in beer duty comes into effect

Pubs face price increases soon before the February 2023 reduction of beer duty takes effect

They are now being examined by industry leaders. Vice chairman of the Campaign for Pubs, Dawn Hopkins, the owner of the Rose Inn, Norwich, said: ‘There’s no way this will lead to a change in prices across the bar.

‘Prices are soaring and these changes won’t come in until 2023 anyway. It also discriminates against craft beer breweries by excluding smaller kegs.’ Director of the campaign, Gary Murphy, said it is ‘highly unlikely’ that the price of a pint will fall.

‘The idea that we’re going to get pints 3p cheaper is frankly ludicrous. The challenges are far greater than the crumbs that are being offered,’ he said. Shepherd Neame’s chief executive Jonathan Neame said that the company would pass on the 3p per-pint duty on kegs it wholesales to landlords. However, drinkers are unlikely see the benefit.

The cut was one of the most talked-about parts of Wednesday's Budget delivered by the Chancellor

The Chancellor cut the budget was the most talked about part of Wednesday’s Budget.

He told Radio 4’s Today programme: ‘In all honesty, pubs are facing between 25 to 30p per pint inflation and all this will do will take the top off that.’

In a reform that will be based on alcohol strength, the Chancellor also promised to abolish the super tax on sparkling wine, prosecco, and champagne.

Although this could theoretically reduce the price of a bottle by 53p, it is likely that this will be offset by large increases in wine production, imports, and hospitality industry costs. The Government insists that the reform of alcohol duties based in strength will lead to real reductions.