Brewery bosses' anger at the Chancellor over taxes

Bosses at two breweries which serve pubs in rural areas have hit out at Chancellor George Osborne over a rise in the duty placed on a pint of beer.

Officials at Hobsons Brewery, based in Cleobury Mortimer, and Wye Valley Brewery based in north Herefordshire, have claimed Wednesday's budget announcement has seen the price of a pint rise by 10p - a 7.2 per cent increase.

They have claimed the move is squeezing British pubs and have also reacted angrily at the way it was announced by the Chancellor.

They say the Chancellor's statement that there "will be no additional increase to alcohol duty rate" failed to mention that he would not be revoking a beer duty escalator inherited from Labour, which has seen the prices rise.

In a joint statement, brewery bosses said they were "baffled" at the Government's actions and said it was flying in the face of the notion of the Big Society.

Nick Davis, owner of Hobsons, said: "We endeavour at all times to run and manage an ethical and responsible brewery, crafting wholesome beers using local ingredients and employing staff from the local community.

"This was supposed to be a budget for growth which supported British manufacturing, it does none of this and creates frustration and breeds bitterness."

Vernon Amor, managing director of Wye Valley Brewery, added: "This budget statement is a kick in the teeth for the British brewing and pub industries, made worse by the misleading manner in which it was announced."

Hobsons Brewery collected the SIBA (Society of Independent Brewers) Best Green Business and Best Overall Business Award in November last year, while Wye Valley Brewery was recently crowned BBC Best Drinks Producer.

By Peter Kitchen