The price of a pint will increase by up to 21p next month because of cost increases imposed by Chancellor Rachel Reeves, according to the British Beer & Pub Association (BBPA).

It says independent analysis by Frontier Economics — commissioned by the BBPA – have left brewers with “punishingly” small margins.

Pubs and brewers are being hit by the increase in employers’ National Insurance contributions, a decrease to the threshold at which businesses pay NICs, and significant increases to the national minimum and living wages. Business rates relief is falling from 75% to 40% and packaging reforms will also add to costs.

The pre-Budget average price of a pint across the UK was £4.80. New costs will take it just top £5.01. In some place, prices are considerably higher, with some drinkers paying about £7.

Last week, Tim Martin, chairman of pubs chain Wetherspoon, said each of its pubs will see a £1,500 increase in weekly costs, amounting to £60m across the group.

BBPA chief executive, Emma McClarkin, said: “The cumulative impact of these taxes and regulations is now plain to see, and it is highly unfortunate that the only way many pubs can remain viable is to pass on the array of upcoming costs to consumers.

“No-one wants to see the cost of an average pint increase by a further 21p and break the £5 average pint barrier that will be required for pubs to maintain their punishingly slim profit margins.

“It is more urgent than ever that government looks at ways to cap or reduce the costs of doing business so we can keep pubs open, preserve their community value, and make sure the price of a pint remains affordable for all.”

The BBPA is calling on government to urgently review new packaging fees, deliver meaningful business rates reform, and phase in new employment costs which are all adding to the price of a pint.