The UK is to reduce the price of a pint of beer by 1p or 2% from 25 March 2013 to help the embattled pub industry.

According to The Campaign for Real Ale (Camra), the beer duty has risen by 42% since 2008, forcing around 18 pubs to close business per week.

UK Chancellor of the Exchequer George Osborne told that 10,000 pubs have closed in the last decade.

The reduction will be seen in both the small pro?ts rate and the corporation tax rate, and will also allow pubs to play live music at the venue.

This decrease, which will be applied on average, high and low strength beers, will allow beer drinkers to save 4p per pint in 2013-2014.

Duty rates on low strength beer will be reduced by 6% and on high strength beer by 0.75% in total from 25 March 2013.

The government will also cancel the alcohol duty escalator for beer in 2014, but will increase it by the Retail Prices Index (RPI) thereafter.

Osborne said, "We will now scrap the beer duty escalator altogether."

Camra chief executive Mike Benner said, "This is a momentous day for Britain’s beer drinkers, who will tonight be raising a glass to the Chancellor for axing this damaging tax escalator and helping keep pub-going affordable for hard-pressed consumers."

However, the alcohol duty escalator for wine and spirits will remain unchanged and will increase by 2% above RPI from 25 March 2013 as reported at March 2010 Budget.