Brits face paying more for alcohol in shops from August after the Chancellor confirmed that the price of wine and spirits will rise.
Jeremy Hunt is increasing alcohol duty rates in line with Retail Price Index (RPI) inflation of 10.1%, hitting punters in the pocket.
But the Chancellor has confirmed a new "Brexit pubs guarantee" will ensure draught beer in pubs will be 11p cheaper than booze in supermarkets.
It comes as part of a new system which will tax alcoholic drinks according to strength from August.
Draught Relief will increase from 5% to 9.2% for beer and cider draught products and from 20% to 23% for wine, spirits based and other fermented draught products.
But industry figures have warned the changes to alcohol duty could see a 20% increase in tax on drinks including red and white wine, adding 44p to an average bottle.
Miles Beale, Chief Executive of the Wine and Spirit Trade Association, said: "The Government's decision to punish wine and spirit businesses and consumers with a 10% duty hike for spirits and a massive 20% for wine, from 1 August, is staggering.
"It is the largest increase in wine duty since 1975."
British Beer and Pub Association chief executive Emma McClarkin said: "The cut to draught duty as part of the alcohol duty reform is positive and we hope that it will result in a boost for our pubs this summer.
"However, the fact is our industry will be facing an overall tax hike, not a reduction, come August."
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: "The tax on alcohol will rise 10.1% in August, but there will be a separate rule for draft beers in pubs, which will mean the duty on draft pints is 11p lower than in supermarkets.
"There’s also the hope that the delay in rising duty will protect the nation’s drinkers while inflation is so high, and only kick in when it has started to fall back."
Jeremy Hunt said: “My penultimate cost of living measure concerns one of our other most treasured community institutions, the great British pub.
“In December, I extended the alcohol duty freeze until 1 August, after which duties will go up in line with inflation in the usual way.
If you can’t see the poll, click here
“But today, I will do something that was not possible when we were in the EU and significantly increase the generosity of Draught Relief so that from August 1 the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets, a differential we will maintain as part of a new Brexit pubs guarantee.”
“British ale may be warm, but the duty on a pint is frozen."
The Chancellor said the change will also apply to “every pub in Northern Ireland” due to the Windsor Framework agreed between the EU and UK.
James Fry, Partner and specialist hospitality sector lawyer at law firm Fladgate, said: “Whilst UK pubs will welcome the duty freeze, it is not a cut and as with all businesses, any minor concessions of this nature are completely overshadowed by the increase in corporation tax from 19% to 25%.”
At the same time, the price of cigarettes to rise by £1.75 as tobacco tax hiked by nearly 15% tonight.
