Duty on draught beer in pubs has been frozen by the Chancellor but tax on spirits is to rise in line with inflation, sparking anger from the scotch whisky industry.

Mr Hunt made a big deal of his beer announcement stating it would be a boost for pubs.

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News, however, that spirits duty would go up prompted warnings that the industry will suffer.

The Chancellor said: "British ale may be warm, but the duty on a pint is frozen.”

He said from August, the duty on draught in pubs will be up to 11p lower than duty on beer in supermarkets.

Mr Hunt said it was "a differential we will maintain as part of a new Brexit pubs guarantee".

Scottish Licensed Trade Association, managing director Colin Wilkinson, said: “I think the reaction of the licensed trade in Scotland is one of disappointment at what wasn’t mentioned in today’s Budget.”
On the tax relief on beer, Mr Wilkinson said: “This is good news and a good start to helping the struggling hospitality sector get back on its feet.
“Our pubs and bars have suffered enough since the onset of the Covid pandemic so this new policy from the UK Government – the ‘Brexit Pub Guarantee’ – certainly gives many businesses some hope for their future.”

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He added: “The UK Government should now go further and consider further duty differentials on other alcohol products sold in our pubs and bars if it really wants to save our industry – something we have been advocating for at least the last two years.”
But as the duty on spirits is to rise it was branded a “hammer blow” by one of the biggest producers of Scotch whisky.

Nuno Teles, Managing Director Diageo GB, said: “Today’s decision is a hammer blow for pubs, drinkers and for Scotch, a UK homegrown industry supporting tens of thousands of jobs. We urge the Chancellor to reverse this punitive and inflationary tax hike.”

While union leaders said workers would suffer as firms could look to recoup costs.

Louise Gilmour, GMB Scotland Secretary, said: “It’s yet another unhelpful political measure for Scotland’s whisky and spirits sector, following hard on the back of Holyrood proposals for an alcohol advertising ban.  

“GMB’s concern is that workers mired in the cost-of-living crisis will see their pay, conditions, and ultimately investment in their workplaces, curtailed by employers seeking to clawback costs as a consequence of short-term political policy.

“Whisky and spirits production is the jewel in the crown of Scotland’s world-class food and drinks sector, but the political bubble looks out of touch about its importance not just to the country, but to the workers, communities, and supply chains that depend on its future growth.”