BUDGET: Beer drinkers can toast a cut in the price of a pint

BEER drinkers can toast plans revealed in today's budget to cut the price of a pint.

Chancellor George Osborne announced that he will scrap the controversial beer tax escalator as well as 1p from the cost of a pint, a two per cent drop in duty. Duty on other alcohol will not be cut.

Josh and Michelle Dunkley of The Crown, Penzance are pleased with the 1p drop in the price of a pint

The announcement, which has been hailed as a 'momentous day for British beer drinkers' has also been welcomed by a local publican.

"It is about time they did this," said Michelle Dunkley of The Crown, Penzance.

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"We sell more beer than anything else so that is good news but everything else is still going up."

Husband Josh brews around six beers which are served in the west Cornwall pub and also sold locally and further afield, including London.

"He will be ecstatic with the freeze on beer tax," said Mrs Dunkley.

"This eases things slightly and now he could start to think about taking on staff and expanding the business."

Beer tax has already risen 42 per cent since 2008 thanks to the escalator with the Campaign for Real Ale fighting for a long term freeze on the duty.

CAMRA says people's drinking habits have changed to reflect the ever increasing rise in price of their favourite tipple. Many now turn to the cheap booze aisle in supermarkets and off licences and are turning away from their traditional pint in the local pub.

"Scrapping the beer duty escalator, combined with a 1p cut, is a massive vote of confidence in British pubs and will lead to an increase in pub going and more money in the Chancellor's coffers," said Mike Benner, CAMRA chief executive.