Price of a pint to soar

Brewing giant Scottish & Newcastle was today set to raise its wholesale prices on top-selling brands by 3.9 per cent to pay for rising costs of raw materials including barley, cider apples and aluminium.

The price rises will add up to around 4p a pint, but landlords could add another 6p to meet rising costs of wages and energy, making a total of 10p.

And then Chancellor Gordon Brown, in what is set to be his last Budget speech, could slap more taxes on drink, possibly as much as 5p a pint.

Reports say that this would mean the price of a pint rising by 15p in the coming months, and there is a suggestion that there could be more to come when the smoking ban in England comes into effect in July, biting into brewers' and pub companies' profits.

But Banks's drinkers may have escaped the big increases, with parent company Marston's having announced wholesale increases of less than three per cent last December.

And many licensees, especially those selling large volumes of beer, may have decided not to pass on any of the increase to regulars.

The price of barley is being driven up by the rapid expansion of biofuel production. Demand for biofuel feedstocks such as corn, soya beans and rapeseed is encouraging farmers to plant these crops instead of grains like barley.

Experts say that one consequence could be a long-term shift upwards in the price of beer.

But Marston's said it had long-term contracts for its hop and barley requirements, which allowed it to absorb as much of the increase as possible.

The hike in the price of a pint comes days after West Midlands bakers were forced to increase prices of bread and cakes after poor harvests pushed up the cost of flour.Rising cost of raw materials will see drinkers paying 10p more

By Jim Walsh