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Duty Escalator Stays in Place

Despite protests from brewers and consumers, Chancellor of the Exchequer George Osborne has announced that the duty escalator for beer production will remain in force.

In his annual Budget statement, the Chancellor confirmed that there will be no changes to beer duty (the tax paid by brewers on their products), inferring this will rise by 2% above the current inflation rate.

This means beer tax is set to rise by around 5%, which is likely to translate into a pub price increase of up to 10 pence per pint, once VAT has been added and rounding has taken place.

The decision comes despite more than 100 Members of Parliament signing an Early Day Motion calling for the escalator to be scrapped as a move to limit pub closures and create new jobs in the brewing and hospitality industries.

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