ARKELL'S today revealed it was taking on the large breweries by cutting 5p from every pint and bottled beer it produces.

The bold price cut will be in place in time for the Golden Jubilee and the World Cup and the Swindon firm hopes it will have a dramatic effect on its sales.

Arkell's has remained staunchly independent since it was established more than 150 years ago and has managed to survive despite competition from international breweries and pub chains.

As a smaller brewery it benefited from last month's budget in which chancellor Gordon Brown offered tax incentives.

It will bring in the price cut on June 1 at all its 101 pubs in the Swindon area. Bottled and canned beer sold in shops and off licences will also be cheaper.

Managing director James Arkell said: "We are very happy to pass the price reduction directly on to all our customers.

"It will be just in time for the Golden Jubilee bank holiday and hope we also hope people will celebrate the fortunes of the England football team in style with a pint of Arkell's real ale."

The brewery had hoped to pass on the full effect of a 14p tax cut announced by the chancellor.

But the brewery, which brews under 30,000 hectolitres a year, was only eligible to the 5p cut as part of a sliding scale imposed by Mr Brown.

Arkells, based in Stratton St Margaret, employs around 150 staff.

Its first beer was created in 1843 by John Arkell and, as one of Britain's oldest independent breweries, it continues to brew traditionally on site and also runs a wine merchant as well as support services for its pubs.

The firm was today launching its draught version of its Jubilee Ale, brewed to mark the celebrations.

Mr Arkell hopes to present the Queen with a crate of the ale in the next few weeks and his firm is also producing 36-pint party packs and gift box sets specially designed for organisers of jubilee parties.

Swindon's other small brewery, Archers, is also expected to benefit from tax cuts announced in the budget.

The firm employs 20 staff at the former Great Western Railway weight house in Penzance Road, which was used for weighing and balancing steam engines during construction.

It has yet to reveal how the chancellor's decision will affect the price of its beer, which includes an Eastern Promise World Cup beer and the Golden Years jubilee brew.

www.swindonweb.com/arkells