Draught pints will cost 1p less from Thursday due to a cut in alcohol duty in a move to help the sector grow.
The 1.7% tax cut on the production of draught alcohol announced in the Budget last year is the first alcohol duty cut in a decade.
A relief for craft alcohol producers also comes into effect from Thursday, with both policies costing a combined £85million.
The relief applies to draught drinks below 8.5% ABV, which equates to a 1p tax cut on the average 4.58% pint.
The government said the measure will affects three fifths of alcoholic drinks sold in pubs.
However, critics have said increases in employer national insurance contributions to minimum wage announced in the Budget mean pint prices will go up.
FTSE 100
The UK's flagship share index, the FTSE 100, was up 114-points at 8,663 shortly after opening this morning.
Brent crude oil futures were down 0.17%, trading at $77.00 a barrel.
Companies reporting today
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Chevron Corp* | Q4 Results |