Chancellor George Osborne has left alcohol duty alone in his emergency Budget but increased VAT to 20 per cent
The move, which industry experts predict will add 6p to a pint, will come in on January 4.
However pubs were spared any further duty increase as Osborne pointed out the industry had been hit hard by successive rises in recent years.
He also confirmed Tory plans to reverse the previous government's decision to hike cider duty by 10 per cent.
Levels will again be reviewed in the autumn with the government pledging to take a close look at the causes of binge-drinking.
For the first time trade groups the British Beer & Pub Asociation, CAMRA, and the Society of Independent Brewers, joined together to urge the Chancellor to leave duty alone. They had asked for a compensatory cut in duty if VAT was increased. They predict the VAT rise will add 6p to a pint.
Meanwhile measures were unveiled to help small businesses, including cutting corporation tax by one per cent a year until it reaches 24 per cent.
He also raised the threshold for National Insurance to £131 a week from £110.
Small businesses such as pubs could also benefit from the extension of the Enterprise Finance Guarantee scheme. There are also plans for tax breaks for family-run holiday letting businesses.
Osborne said the emergency Budget "protects the most vulnerable in our society - yes it's tough but it is also fair."
For more on the Budget and industry reaction keep checking this site.