THE price of a pint of beer across the north could be 20p higher by the end of the year, as today’s budget offered no lifelines for pub-goers.
Chancellor Philip Hammond confirmed that alcohol duty will rise in line with inflation as previously planned. This is expected to be around 3 per cent.
But this rise is not taking into account other overheads publicans have to fork out for, such as staff costs and rates.
And prices set by the breweries will also have to follow suit, which will mean end-user prices will be even higher than many predicted.
Speaking to The Irish News, one publican said the customer can expect "an increase closer to 20p a pint" by the close of 2017.
"At the end of the day, we’ll have to fall in line with everything else and costs are going up, so we’ll have to put our prices up," he said.
"Pay-as-you-earn, the new pension scheme, inflation – it all adds up, so before the year is out you could realistically be looking at paying an extra 20p for your pint."
Mr Hammond also laid out plans to provide a £1,000 discount on business rates bills in 2017 for all pubs with a rateable value of less than £100,000 – but this only applies to establishments in England.
Cider, wines and spirits prices are also set to increase with inflation.
Another spectre looming over the pub industry is that of Brexit, which has already squeezed prices due to the falling value of the pound.
In January, Heineken and Carlsberg became the latest beer makers to raise prices, following MolsonCoors - makers of Carling - and ABInBev, who’s stable of brands include Budweiser.
Brexit-related inflation was already being felt in the cost of transporting beer as oil used for fuel is priced in dollars, which is currently sitting at only $1.22 for every pound.
Colin Valentine, national chairman of the Campaign for Real Ale (CAMRA) said the chancellor’s budget represented a "missed opportunity" to support consumers.
"The UK still pays one of the highest rates of duty across Europe, only consuming around 12 per cent of the beer yet paying nearly 40 per cent of all beer duty in the EU," he said.
"Further beer duty increases will lead to unsustainable price increases in pubs. The decision completely ignores the pressures that are being faced by the beer and pub sectors."
