The increase, expected to be linked to retail prices index inflation, would take duty on a pint from around 50p to 52p.
Join our WhatsApp channel: The Morning Round-Up
Get the biggest pub trade stories straight to your phone. Listen to our one-minute daily news briefing and receive breaking news, exclusives and sector updates throughout the day. Remember to turn notifications on in the top right corner!
The move would come despite calls from the sector for beer duty to be frozen and the draught relief widened.
Calls for duty freeze
British Beer and Pub Association (BBPA) chief executive Emma McClarkin said UK brewers already faced some of the highest beer duty rates in Europe.
She said: “Currently our brewers are forced to pay some of the highest rates of beer duty in Europe, twelve times more than Germany and Spain.
“This Budget, the Government has a real opportunity to build on their support for the sector by freezing beer duty and increasing the draught discount.
This would be an undisputed win-win meaning more affordable pints, greater investment, and more jobs.
Emma McClarkin
UKHospitality chief executive Allen Simpson said hospitality businesses were already facing “unsustainable cost pressures”.
He added: “While alcohol duty is not paid directly by operators, any increase in the headline rate of beer duty risks adding further pressure through higher drinks prices.
“If the headline rate does increase, the Government should look to increase the discount on draught duty to provide greater support for pubs and hospitality businesses.
More broadly, any duty increase makes it even more important that the Government takes action elsewhere in the Budget to reduce the sector’s tax burden and support investment, jobs and growth.
Allen Simpson
Further pressure on pubs
The reported increase would add to existing cost pressures facing pubs, including higher employment, energy and supply costs.
It would also follow repeated warnings from operators and trade bodies that further tax increases risk limiting investment and pushing up prices for customers.
The Treasury said decisions on tax would be set out by the Chancellor at the Budget rather than commenting on speculation ahead of the announcement.




