The Chancellor has announced that the duty paid for draught beer would freeze as Jeremy Hunt outlined his Spring Budget.

The policy has been dubbed the "Brexit Pub Guarantee" and would mean the beer served in UK pubs would be 11p lower than in supermarkets.

Jeremy Hunt announced the move, saying: “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 1 August 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.

“And even better, thanks to the Windsor Framework negotiated by my right honourable friend the Prime Minister, that change will now also apply to every pub in Northern Ireland.”

The Northern Echo: (Canva) The Chancellor announced duty rises from non-draught beer (Canva) The Chancellor announced duty rises from non-draught beer (Image: Canva)

With this, many will want to know what this means for the price of a pint in pubs.

Alcohol duty to increase for supermarkets

The Chancellor has also announced a rise in the duty paid for alcohol (with the exception of draught beer in pubs).

A new system is set to be implemented at the same time with drinks containing more alcohol being taxed higher than those with lower percentages.

The tax is set to increase by as much as 10.1% in August in line with inflation 

The chancellor said: “In December, I extended the alcohol duty freeze until August 1, after which duties will go up in line with inflation in the usual way."

How will the Spring Budget affect the price of draught beer in pubs?

The announcement that the duty paid for draught beer would be frozen is part of a move to ensure "pubs will always pay less tax on a pint than a supermarket".

It is hoped this will support the struggling hospitality sector with pubs and restaurants set to benefit.

The policy is likely to ensure that the price of a pint at the pub is unlikely to rise as quickly compared to supermarket beer.

This means the amount paid by pub-goers could remain the same price while prices could rise in stores and elsewhere as duty increases for these businesses.