South Hams businesses have said they are concerned about a predicted rise in beer duty that is set to be announced in the autumn Budget.

The pub industry in the South Hams, which is worth tens of millions of pounds, could take a hit if beer duty is raised as expected, Britain’s Beer Alliance has warned.

Tax on beer is expected to rise by 3.4 per cent in the Chancellor Philip Hammond’s autumn Budget, which will be revealed on Monday, October 29. With consumers increasingly opting for cheaper supermarket drinks and pub margins increasingly stretched, local establishments are braced for further struggles.

Sam Beaman, head brewer at Salcombe Brewery, said: “A rise isn’t good for anyone in the industry – not just us as producers, but our customers, landlords and their customers.

“We know pubs are already struggling to survive, so an added tax won’t be great.

“As a company, we’ve had great growth over the past year, but it would be interesting to see the effect this has.

“The industry as a whole has had a great summer with the weather and the World Cup, but any rise wouldn’t be welcome.”

John Short, owner of the Ship Inn, Ugborough, said: “Pubs are already stressed, especially village pubs. We don’t have any drinkers in the village anymore because of the price – I survive on the restaurant.

“People are drinking at home because the price is crazy. We have less and less drinkers and it’s pricing us out of existence.

“Beer prices are going to go up anyway because of the hot summer. The hop crop yield is less than expected and we’re paying more business rates, so we’ll get hit three times.

“When I came here 33 years ago, beer was 80p a pint, lager was 80p a pint and Carlsberg was the premium at 90p; now it’s £4.50, and the others are around £4 a pint.”

Chris Roberts, manager of the Hope and Anchor Inn, Hope Cove, said: “Every year we slash our prices on one day to show the customer what a pint of beer would cost without the tax.

“With our prices increasing, and wages increasing in the sector, it will inevitably mean the death of many small pubs. Something has to break.”

The South Hams’ 124 pubs and bars employ 1,026 people, paying them £10m in wages, new analysis from Oxford Economics shows.

They also support another 432 jobs and £7.8m in wages indirectly, either through related jobs, such as those in the supply chain, or through the money spent by people working in the pub industry.

The analysis shows that, in total, through salaries and spending power, the area’s pubs contribute £32m to the local and national economies.

Throughout the UK, 3.2 pubs have closed on average every day in the past two years. If that trend continues, Britain’s Beer Alliance, an umbrella organisation for major brewers and pub companies, said one in 10 pubs nationwide could close within five years.

A survey conducted by the organisation shows that more than a third of people would think again about a trip to the pub if beer prices increased. It also showed that a decrease in pubs could cause more than just financial loss, with 77 per cent saying they go to the pub as a place to relax and unwind, with two in five saying it acts a social hub.

David Cunningham, programme director at Britain’s Beer Alliance, said: “Pubs are the heart and soul of our culture and communities – they support many jobs, contribute significantly to the economy and are dear to people’s hearts right across the country.

“Pubs already face a range of tax pressures, and if the Chancellor raises beer duty in line with Retail Price Index inflation as planned, on

October 29, pubs will feel the pinch even more. Seven in every 10 alcoholic drinks sold in a pub is beer, so it’s easy to see how a small tax increase adds up over a year.

“Based on current closure rates, we estimate that within five years more than one in 10 pubs in the UK will have closed for good, costing thousands of jobs. This will have a devastating effect on communities up and down the UK.”

Jackie Parker, national chairman of the Campaign for Real Ale, said earlier this year: “It’s no surprise most people are finding pub pints unaffordable given the tax burden they’re facing. Beer drinkers will naturally look to more cost-effective ways to enjoy a drink, such as buying from off-licences and supermarkets for home consumption.

“The result is incredibly detrimental to our local communities and to our own personal connectivity. Having a good local makes people happier, better-connected and more trusting. Furthermore, pubs help bring communities together and support the local economy.

“The reality is that there are very few places that can replicate the benefit provided by our nation’s pubs, and once they’re gone, they’re gone for ever.”

There are eight breweries in the South Hams supporting 112 jobs and adding £2.4m to the economy, according to the Oxford Economics analysis, which when all taken together add £38m to the economy.