The manager of a Mosborough freehouse has said drink prices will have to rise immediately at the pub he manages, following last week’s budget.

Joshua Hayton, 34, runs the Craftworks Micropub in Mosborough and told Sheffield Rise how prices will have to rise immediately following Labour’s tax raid on businesses.

He told Sheffield Rise about his immediate reaction to the announcement: “I think everywhere will struggle. Some places more than others.”

As part of last week’s budget, the rate of national insurance that employers pay will increase by 1.2 per cent. The rate at which they start paying has been slashed to £5,000 from £9,100.

According to the Institute for Fiscal Studies, the changes mean that businesses will be taxed a further £900 each year to employ the average worker.

Joshua said that drinks prices will have to rise immediately for pubs to cope with this additional cost: “We’ll have to put it up over the next two weeks. We need use the busy Christmas period to build up cash to feel the effects in April.”

He estimated that his pub will increase the prices of pints, spirits and soft drinks by at least 10p, meaning that consumers won’t notice the 1p cut to duties on draught beers, a measure that was announced alongside last weeks’s national insurance rises.

Joshua said: “When I was running a pub in Nottingham years ago, the pub next door to us had lots of trouble. Customers would say ‘the duty’s gone down by 2p, so why’s there not 2p off a pint?’ The landlord put a bowl of pennies on the bar, and told them to take their 2p out of there if they wanted it back.”

South Yorkshire Mayor, Oliver Coppard, praised the new government’s first budget when it was announced: “In Barnsley, Rotherham, Doncaster and Sheffield, we have been fixing the foundations for years. While this is only the first step, it is clear we now have a Government that is working with us to deliver on our shared mission to restore the pride, purpose and prosperity of South Yorkshire.”