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.