Pint prices to rise as Healey hikes beer duty

The cost of a pint is set to increase by 2p, following Chancellor John Healey's announcement to increase beer duty. This duty hike will raise it from 50p to 52p per pint, as it will be aligned with the Retail Prices Index (RPI) inflation, currently at 3.9%. The rise in beer duty, announced by Healey, disappointed many pub landlords who had been anticipating support in the budget.

However, Healey attempted to mitigate the impact by providing a £10 million boost to alcohol duty relief, which would benefit over 2,000 British beer brewers and cider makers. The duty on wine bottles will also increase, adding between 10p and 12p to the price, while gin duty will rise by 35p. The Treasury typically collects about £12.5 billion from alcohol duty every year, and this is expected to rise to £13 billion in the next financial year before reaching £14 billion by 2031-32.

Healey confirmed that the Treasury will reduce business rates on pubs, clubs, and music venues by 20%, a commitment made by former Chancellor Andy Burnham. Despite this, hospitality industry leaders welcome the decision but emphasize the need for more assistance to address the increasing costs forcing businesses to close in town centers.

Pub chain Admiral Taverns and brewer Damm UK had hoped for a freeze on alcohol duty, while celebrity chef Tom Kerridge and JD Wetherspoon chair Sir Tim Martin have called for a reduction in VAT.