'Disastrous' Budget means 10p on a pint

Two out of three licensees expect to add either 5p or 10p to a pint following the 2% Budget duty hike.

That's according to the MA's Big Budget Survey, which shows the level of anger at the Chancellor.

The online poll of more than 200 licensees found 35% will add 5p to a pint of standard lager. A similar proportion — 33% — will add 10p. For premium lager, 29% will slap on 5p and 35% will put on 10p. A sizeable minority — 9% — will add 15p or more.

The picture is mirrored across other categories, with 38% adding 5p, and 34% adding 10p, to a pint of cider. For a 175ml glass of wine, the proportions are 35% adding 5p and 34% adding 10p.

Nearly 18% put up prices immediately, and 51% will do so within two weeks of the Budget. Just under 7% plan to absorb the price hike.

Fewer licensees plan big increases for standard ale and a spirit measure — 5p is the preferred choice among 41% and 45%, respectively.

Elsewhere, 82% of licensees think the duty hike will lead to more pub closures, and 65% believe it will mean more people drink at home.

Nearly three quarters (73%) rated the Budget as "disastrous" or "very bad" for the pub trade — none thought it was good or very good.

Meanwhile, 50% think the extra duty on fuel will hit customer visits, and 59% believe it will affect food costs.

The 2% duty hike equates to just 1p on the cost of a pint, plus VAT, which licensees will add at the point of sale.

Trade consultant Phil Dixon said be believes licensees have added their own increased overheads and business costs on top of the duty rise to work out new retail bar prices.

Regarding the high-profile Axe the Tax campaign, 36% said it was OK, 30% good and 13% excellent. One in 10 judged it as bad and the same proportion as awful.