Increases in beer duty and VAT are harming the pub and hospitality sector's ability to create jobs, according to the British Beer and Pub Association (BBPA).

The organisation has called for plans to further increase duty in March to be axed after today's VAT increase pushed the average price of a pint of beer through the £3 barrier. BBPA chief executive Brigid Simmonds said: "Today's VAT rise is another tax blow for the industry. The Treasury is piling tax on top of tax.

"The government has recognised that tax increases harm pubs, and wants policies that don't damage the sector. Now is the time to translate this wish into action."