BEER drinkers will have to dig deeper into their pockets to sup their favourite pint as prices are set to rise within hours.
Chancellor Rachel Reeves announced in her Budget last year that alcohol duty would increase by 3.66 per cent from February.
The move is in line with Retail Price Inflation and means the cost of buying booze in both shops and pubs will increase.
In supermarkets, a four cans of lager (330ml) will rise by 6p a pack, while cider will cost 2p more.
A 75cl bottle of prosecco will go up by 11p, while a standard bottle of red wine will see a 13p increase and white wine a 11p rise.
Scotch whisky is set to increase by 40p, according to the Wine and Spirit Trade Association (WSTA).
Those enjoying a tipple down their local will also see a price rise.
The change will add 2p of tax on to the price of a pint and pubs, who are feeling the heat from economic pressures, are likely to pass this cost on to customers.
Alcohol duty is paid by producers and is usually passed onto customers in shelf prices.
The tax is intended to raise money for the government and discourage excessive drinking – similar to levies on smoking, sugary drinks and gambling.
Emma McClarkin, head of the British Beer and Pub Association, said: “A rise in alcohol duty alone could mean that a beer gets pricier, because right now pubs make just 12p a pint.”
PUBS SAY THEY NEED HELP
The tax hike comes at a time when pub landlords have been complaining the Government isn’t doing enough to help their businesses.
Reeves announced support for pubs worth £100million following her tax grabbing budget that has fuelled fears of a jobs bloodbath and put many boozers on the brink of closure.
The rescue package means pubs in England will get 15 per cent off their business rates next year.
It could also mean opening hours will be extended to 2am during the World Cup this summer to boost business.
However, critics have said the offering is too little, too late with Shadow Chancellor Sir Mel Stride blasting the Chancellor as offering a “temporary sticking plaster”.
Miles Beale, the chief executive of the WSTA, said: “Despite the OBR (Office for Budget Responsibility) at last acknowledging higher prices lead to a decline in receipts, the Government fails to recognise that its own policy is benefiting no-one.”
He added: “For the nation’s wine and spirit sector the complexities of price changes, especially for wine which is now taxed by strength, mean more red tape headaches ahead.
“Add to this all the other costs – including NI (national insurance) contributions, business rates and waste packaging taxes – and businesses have no choice but to increase prices in order to keep afloat, which unfortunately means consumers are going to take the hit once again.”
A Treasury spokesperson said: “For too long the economy hasn’t worked for working people, and cost of living pressures still bear down.
“That’s why we are determined to help bring costs down for everyone. It’s why we’re taking £150 off energy bills, increasing the National Living Wage, ending the two-child limit, rolling out free breakfast clubs for all primary school children, and freezing fuel duty, rail fares and prescription fees.
“We also need to rebuild the public services we all rely on. We’ve put record funding into our schools and NHS to give every child the best start in life and bring down waiting lists.
“Alcohol duty plays an important role in ensuring public finances remain fair and strong and funds the public services people rely on every day.”
