Punch and Enterprise pass on duty hike to licensees

The UK's two biggest pub operators are passing on the Budget duty hike to their licensees, the companies have confirmed.

Punch Taverns and Enterprise Inns have both said they are not absorbing the two per cent tax increase unveiled by Chancellor Alistair Darling.

In the full Budget report, the Treasury said the two per cent hike would mean an extra 1p on a pint.

However, the British Beer & Pub Association said it more likely means an extra 5p a pint across the bar, while licensees have warned of even bigger rises on a pint.

A spokeswoman for Punch Taverns said: "We have written to all of our licensees confirming that we will pass on the duty increase outlined in the Chancellor's Budget.

"We will not be making any further adjustments to our pricing."

She added that Punch remained "extremely disappointed the government chose to take punitive action against the pub sector and would urge the industry to come together with one voice to actively lobby the government to change its stance."

Punch licensees are understood to have recieved a letter from the company, the day after the Budget was announced, confirming an increase in wholesale prices immediately.

Meanwhile, a spokeswoman for Enterprise Inns said: "All changes to duty will be passed on by the amount and the point at which they are applied by the Chancellor."

And Admiral Taverns confirmed it passed on the duty hikes to its licensees on April 27, along with some supplier increases.

However, a number of managed chains and other smaller operators have said they are absorbing the hike.

JD Wetherspoon, Mitchells & Butlers, Arkell's, Joseph Holt and Brakspear are all freezing their prices, despite the Budget blitz.