Wetherspoon to drop price of a pint from Tuesday

Pub firm JD Wetherspoon is to lower the price of a pint across its pubs from Tuesday, following the Government's move to reduce beer duty and scrap the duty escalator.

The company said that a pint of Ruddles and Greene King IPA would fall to a maximum of £1.99 in its pubs.

Those pubs that already serve the two beers at £1.99 or less will reduce the price by a further 5p.

The decision applies to 845 of Wetherspoon's 870 pubs, with just its central London and airport pubs excluded.

Wetherspoon chairman Tim Martin said: "In our recent interim results we pointed out that our taxes increased by £23.4m to £273.5m in the six months to 27 January 2013, even though our profits declined.

"The effect of the budget has been to increase our excise duty costs by approximately £1.5m, since the rise in duty for wine, spirits and cider was greater than the decline in beer duty.

"Other tax increases in the pipeline for rates, fruit machines and the late night levy will cost an additional £6m.

"However, Wetherspoon warmly welcomes the concession from the Chancellor in respect of beer and, as a result, we are reducing our prices.

"We also urge the Chancellor to consider the advice of Jacques Borel's "VAT Club", supported by Fullers, Young's, Heineken and many others, to reduce VAT for pubs and restaurants to supermarket levels. This will create hundreds of thousands of jobs, and will increase government revenue.

"Each new Wetherspoon pub produces approximately £650,000 per annum for the government in taxes, as well as the creation of 45 jobs.

"Tax parity with supermarkets, will therefore, also provide a massive shot in the arm for declining high streets, where pubs, coffee shops and restaurants will help to fill empty buildings."

Beer duty escalator scrapped and beer duty to fall by 1p a pint >>