No reprieve on beer duty — that's the hammer-blow dished out by the Chancellor Alistair Darling in the Pre-Budget Report.
The pub sector had hoped that the extra 8% duty added to alcoholic drinks when VAT was cut to 15% would be removed from 1 January, when VAT returns to 17.5%.
However, Darling made no mention of any changes to duty.
Pubs that open past midnight on New Year's Eve can continue to charge 15% VAT on sales until the early hours of 1 January.
A period of grace has been granted that means pubs won't have to revert to the higher level of 17.5% until they close or until 6am, whichever is earlier.
On the up-side, the Government will raise the threshold on empty property rate relief to units with a rateable value below £18,000. The previous level was £15,000.
Darling also said he would extend the Enterprise Finance Guarantee Scheme until March 2011, providing a further £500m worth of loans for small businesses.
Under the scheme, the Government guarantees 75% of loans. Banks cover only the remaining 25% — meaning there's less risk in offering vital loans to help struggling pubs.
Eligible firms, which must have turnover of less than £25m, can borrow between £1,000 and £1m under the scheme.
Darling did announce plans to cut bingo duty from 22% to 20% from 2010.
Commenting on Darling's lack of action on alcohol duty, WIne & Spirit Trade Association chief executive Jeremy Beadles said: "Today's confirmation that these tax increases will remain in place is disappointing for the trade and the millions of British consumers they serve, though sadly it is not surprising given the state of public finances.
"This means that since last year's Budget excise duty has gone up by around 20% for wine and 16% for spirits - excessive increases at a time when most families are feeling the pinch."