CHANCELLOR Rachel Reeves’s promise to knock a penny off a pint appears to have fallen short after industry leaders warn today that prices are actually expected to increase by 21p.

Research by the British Beer and Pub Association (BBPA) and consultants Frontier Economics showed that pubs are expecting to increase the average price of a pint above £5 for the first time.

The expected increase comes amid a raft of extra costs linked to the Autumn Budget, in which Ms Reeves announced a 1.75 per cent reduction in draught beer duty, which she said would reduce pints by a penny.

BBPA estimates that the budget announcements are in fact costing the industry an extra £650 million. 

Business rates discounts will be cut from 75 per cent to 40 per cent from April, while pubs face increases to the minimum wage and a rise in National Insurance rates.

Emma McClarkin, chief executive of BBPA, said: “It is more urgent than ever that government looks at ways to cap or reduce the costs of doing business so we can keep pubs open, preserve their community value and make sure the price of a pint remains affordable for all.”

A HM Treasury Spokesperson said: “Thriving pubs are at the heart of our communities, and we’re taking action to support them by introducing a permanent, new lower business rate from 2026.”

“Without our action, business rates relief for retail, hospitality and leisure would have ended completely in April this year.

“Instead, we are protecting one in three businesses from paying business rates and extending 40 per cent relief for 250,000 properties in retail, hospitality and leisure, while more than half of employers will either see a cut or no change in their National Insurance bills.”