THE pub industry in Swindon, worth tens of millions of pounds, could take a hit if beer duty is raised as expected next week, Britain’s Beer Alliance has warned.

Tax on beer is expected to rise by 3.4 per cent in the Chancellor's autumn budget, due to be served up on Tuesday, putting around 4p on the prince of a pint. With consumers increasingly opting for cheaper supermarket drinks and pub margins stretched, local establishments are braced for further struggles.

One Swindon landlord who did not want to be named, said: “It isn’t fair, it isn’t right to raise it that much. It is another kick in the teeth for pubs all over the country. A lot more people are going to see their pubs dwindling.”

Andy Marcer, who has the Beehive, said the predicted rise was higher than expected. “There tends to be a rise to some extent every year, but that is quite high. But at the end of the day there have been massive cuts to services and if people want to hang on to them they have to pay.”

But he added: “Small businesses cannot afford to absorb the rise so it will get passed on to the customer.”

Swindon’s 119 pubs and bars employ 1,555 people directly, paying them £16 million in wages, new analysis from Oxford Economics shows.

Arkells, the only brewery in the town, supports 294 jobs and adds £6.9 million to the economy. Arkells was approached for a comment, but did not respond.

They also support another 573 jobs and £11 million in wages indirectly, either through related jobs.

In total, through salaries and spending power, the area’s pubs contribute £50 million to the local and national economy, the analysis shows.

Across the UK, 3.2 pubs have closed on average every day over the last two years. If that trend continues, Britain’s Beer Alliance, an umbrella organisation for major brewers and pub companies, says one in ten pubs nationwide could close within five years. It would mean a significant loss to the estimated £18 billion pub industry, which supports around 800,000 jobs.

A survey conducted by the organisation shows that more than a third of people would reconsider a trip to the pub if beer prices increased. It also showed that a decrease in pubs could cause more than just financial loss.

David Cunningham, programme director of Britain’s Beer Alliance, said: “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.