Drinkers are set to pay more for alcohol from August – but beer drinkers in pubs have been saved from increases after Jeremy Hunt delivered his Spring Budget in the Commons today. While drinkers will see tax on other alcohol soar by 10.1% in August in line with inflation after a freeze during the peak of the cost-of-living crisis, Jeremy Hunt set out a separate rule which will see the duty on draught pints in pubs drop to up to 11p lower than in supermarkets.

Mr Hunt said: "My penultimate cost-of-living measure concerns one of our other most treasured community institutions, the great British pub. 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.

"But 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 August 1 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. Madam Deputy Speaker, British ale may be warm, but the duty on a pint is frozen.

BREAKING: Every single announcement from Jeremy Hunt Spring Budget

"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." Immediately prior to the Budget announcement, the British Beer and Pub Association (BBPA) said UK beer duty was 12% higher than Germany's and £1 in every £3 was paid to Treasury in tax.

Mr Hunt also hit out at "declinists" as he concluded his Budget speech, and claimed the Budget delivered growth on top of the "stability" of the autumn statement. Referring back to the autumn, the Chancellor said: "In November we delivered stability. Today it's growth.

"We tackle the two biggest barriers that stop businesses growing - investment incentives and labour supply. The best investment incentives in Europe. The biggest ever employment package. For disabled people, more help. For older people, barriers removed. or families feeling the pinch: fuel duty frozen, beer duty cut, energy bills capped. And for parents, 30 hours of free childcare for all under fives. Today we build for the future with inflation down, debt falling, and growth up.

"The declinists are wrong, and the optimists are right. We stick to the plan because the plan is working."