Price of beer 'could jump by 30p a pint'

The price of a pint of beer could rise by as much as 30p, as the soaring cost of barley adds to increases in duty and VAT, experts have predicted.

The cost is likely to increase by 4.25 per cent to 6.5 per cent this year due to the duty escalator alone, which increases by the rate of inflation plus 2 per cent, according to the Grocer.

But the trade magazine said other costs "ignored" by the government in its calculations included ingredients, packaging and distribution.

Diesel was up 35 per cent year on year, cardboard costs had also risen 35 per cent, and other major ingredients associated with brewing, such as barley and wheat, had almost doubled in price.

Experts were predicting that British barley prices in particular - already up 90 per cent in 2010 - would rise even higher, as global barley production was set to fall by 43 per cent on last year's volumes to a four-year low as farmers switched to more lucrative crops such as wheat.

It comes after campaigners criticised the Westminster government's announcement this week that it plans to ban the sale of alcohol below cost price in England, saying it would not go far enough to resolve the problem of binge-drinking.