Drinkers 'paying 45p too much for a pint'

Drinkers are paying up to 45p too much for a pint of beer, MPs were told today.

The claim was made during a Commons investigation of the so called "pubcos," the vast chains that now dominate Britain's pub industry.

In its submission to the trade and industry select committee, the federation claimed that the companies, several of which are owned by City financial groups, are forcing up beer prices.

Stephen Alambritis, of the Federation of Small Businesses, said: "Pub companies do not brew their own beer, but their size means that they can buy beer cheaply - pretty much at cost price.

"They then sell it on to publicans at hugely inflated prices which generate a handsome margin.

"So while pub company profits soar, drinkers are being ripped off and publicans struggle to make a living."

The two biggest pubcos, Enterprise Inns and Punch Taverns, between them own more than a quarter of Britain's pubs.

The pubcos insist that they have invested heavily in modernising their pubs, developed new markets and do not overcharge for beer.

However, there have been criticisms that their "tied" pubs are forced to buy beer from them at an artificially high price.

MPs will look at whether new curbs are needed to redress the balance in favour of drinkers and smaller landlords and brewers.