The real reason why the price of a pint could increase despite Rachel Reeves' duty cut

Rachel Reeves announced she was cutting draught work by 1.7%. (Image: Getty)

The terms of a pint of brew could really summation contempt Rachel Reeves announcing a chopped to draught work successful past week's Autumn Budget. 

Industry experts person warned that the Chancellor's chopped by 1.7% volition not construe to a cheaper pint and slammed her determination to summation employer's National Insurance Contributions (NICs) and the National Living Wage.

Ms Reeves, however, claimed it would pb to a "penny disconnected pints astatine the pubs" - an assertion that has present been disputed. Tim Dewey, main enforcement of the Landlord brewer, was definite the draught work chopped is "irrelevant" to the terms of a pint.

He told The Telegraph: "There’s perfectly nary question that the chopped successful brew work is truly an irrelevance comparative to the terms unit [Reeves has] enactment into the pub industry.

"Duty is what we word a pass-through cost. If work goes up, our terms goes up by the magnitude of duty. If work goes down, our terms goes down by the magnitude of duty.

An manufacture person warned Reeves' chopped is irrelevant to the terms of a pint. (Image: Getty)

"So we get perfectly nary savings arsenic a brewer from the work change. But we’ve got each the costs of the NI summation and besides the surviving wage increase."

Ms Reeves announced a emergence successful employer's NICs from 13.8% to 15% and increased the National Living Wage from £11.44 to £12.21. Dewey claimed these costs would unit pubs to rise prices, negating immoderate benefits from the draught work cut.

Simon Webster, co-founder and main enforcement of Derbyshire’s Thornbridge Brewery, emphasised Dewey's point, calling a redeeming of a specified 1p "ludicrous". 

He told the outlet: "It’s the latest stroke for the industry to beryllium honorable – hospitality has truly been deed with these caller rises. We volition person nary prime but to enactment the terms of a pint up successful the pubs and besides retired of the brewery."

Another manufacture person to slam Reeves' measurement was Jack Hobday, co-founder of trade brewer Anspach & Hobday, accusing Labour of going against the UK's "national prosperity" with the latest Budget.

He added: "In the agelong run, this Government is choosing to marque the UK labour marketplace little competitory by taxing a company’s quality to prosecute moving people.

"I privation our politicians decently debated policy and macroeconomic models thoroughly and publically earlier they announced them."