The Budget could kill "the affordable pint" as brewers and hospitality firms warn the chancellor that they will be driven out of business by further costs.
Rachel Reeves has been warned that raising taxes on alcohol and pubs would lead to a fall in revenues by depressing sales of drink.
In a letter sent to Reeves, hospitality chiefs also suggest Angela Rayner’s proposals to boost workers’ rights could cause a staffing crisis.
It comes after it was reported that the chancellor was considering an increase in alcohol duty in the Budget and also failed to confirm that 75 per cent business rates relief for pubs will be extended beyond next April.
The Budget could kill "the affordable pint" as brewers and hospitality firms warn the chancellor that they will be driven out of business by further costsGettyThe alcohol duty was frozen for almost three years under the Conservatives, until August 2023 when it was was increased by 10 per cent.
Drinks companies say they are already facing a "cost-of-doing-business crisis".
A letter organised by the British Beer and Pub Association (BBPA) said: "The industry simply cannot afford other costs, let alone tax increases.
"Put plainly, for thousands of pubs and brewers across the country there is nothing left to give. The cost of this will be borne by brewers and pubs initially but… ultimately it is the customer who will have to foot the bill."
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It was signed by a number of industry giants including; Greene King, Youngs, Heineken UK and Wetherspoons.
The firms have called for Reeves to follow the five-point plan for pubs she revealed during the election campaign.
They wrote: "If that plan is not delivered, we will see pubs close and the end of the affordable pint.
"When a pub struggles to survive, it cannot continue to be the beating heart of a community, keep employing staff, or contribute to economic growth."
Rachel Reeves has been warned that raising taxes on alcohol and pubs would lead to a fall in revenues by depressing sales of drink
PAAlcohol duty - depending on a drink’s strength - on a pint of 4.5 per cent beer at a pub is 49p.
While the average price of a pint overall, covering all strengths, is £4.98.
Industry experts have previously raised concerns about alcohol duty increases after Rishi Sunak's rise led to a drop in revenues.
