Pub landlord 'insulted' by 1p beer duty change

Mark Holden, who runs three pubs in Cornwall, is concerned by the increased National Insurance costs for employers

A landlord who runs three pubs in Cornwall and employs 92 people says the increase in employers' National Insurance (NI) contributions will cost his business £44,000 a year.

Mark Holden, who is a spokesperson for the British Institute Of Innkeeping, said the 1p reduction in duty on draught beer would not bring down the price of a pint.

Another Cornwall pub manager said the Budget's focus on the reduction in beer duty was "insulting" for the pub industry.

Chancellor Rachel Reeves said the NI increase was necessary to bring stability to the economy but she acknowledged it could affect workers' pay.

'Expect price rises'

Mr Holden, who runs three pubs as a tenant of St Austell Brewery, said the Budget would lead to price rises in pubs.

"The 1p draught beer duty reduction which is used as a headline is a bugbear for me - please don't think the price of a pint is going to come down," he said.

"The National Insurance contribution increase is going to cost us as a business £44,000."

Following the Budget, the National Minimum Wage is also to be increased to £12.21 an hour next year, further increasing a pub's running costs.

"Expect some price rises, it's inevitable that is going to happen," said Mr Holden.

Lara Trubshaw, manager of the Peterville Inn, said the Budget was more painful than expected

Lara Trubshaw, who runs the Peterville Inn in St Agnes, said the Budget "was far more painful than even we predicted".

She described the 1p reduction on draught beer duty as "insulting".

She said: "To have people think there's going to be a drop in the price of beer when there have been so many other price hikes put on our industry.

"With the increase in National Insurance, the minimum wage and the increase in business rates, that anyone thinks there will be a decrease in prices is quite frankly laughable."

'Invest in future'

Prime Minister Keir Starmer said the government had to do "what is responsible to fix the foundations and rebuild our country".

"The principles that we put in place are to stabilise our economy and to invest in the future, along with reform," he said.

He said that it would lead to investment in the NHS, schools, housebuilding and other areas.