HAMPSHIRE’S embattled pubs will be cheering on the Chancellor’s decision to scrap the beer duty escalator which is blamed for forcing pubs out of business.

Publicans and campaign groups have been warning the Government that the escalator, which has added two per cent to the price of a pint since it was introduced by Labour in 2008, could spell the end of the community pub.

Ten pubs closed in south Hampshire alone last year with many being turned into supermarkets.

But Chancellor appeared to have listened to the trade and dumped the beer duty escalator, preventing a 6p rise this year which would have been passed on to the punter with increases of 10p and 20p pint.

South Hampshire Campaign for Real Ale (CAMRA) spokesman David Howes said: “From a pub’s point of view it would have hit their marginal profits which are so tight at the moment.

“This will now help struggling pubs greatly which are facing a tough time.”

Publican Stewart Cross, who brews his own beer at the Platform Pub in Town Quay in Southampton, said: “This is fantastic news. I am so glad he has done this because it will help me and all my fellow landlords.

“It would have been a case of adding 15p to 20p on a pint and customers will have ended up doing more drinking at home and this in turn would have led to more pub closures.

“Since the escalator was introduced and then the smoking ban it’s been bad news for our industry but today at last we have some good news for the trade.”

Kevin Guerrier, who rescued the Obelisk Hotel in Woolston from closing two years ago, said the move was a welcome relief.

He said: “This is fantastic news from our point of view. It would have been a step too far if it had gone ahead.

“It allows us to remain competitive.

“All the Government needs to do now is look at the supermarket prices and more people will come back to the traditional pub.”

The Campaign for Real Ale gathered more than 100,000 names on a petition which led to a parliamentary debate last year. Camra pointed out that beer duty has risen 42 per cent since 2008.