UK beer sales experienced the biggest quarter-on-quarter increase this century in Q3, with sales up 5.2% - although pub beer sales fell 1.2% across the three months.

However, despite the decline in pub beer sales, Q3 was still the most favourable on-trade third quarter since 2003.

The British Beer & Pub Association’s (BBPA) latest Beer Barometer showed an increase of 12.5% in sales in the off-trade. In total 103m pints of beer were sold in Q3.

The BBPA said the increase follows the fine summer weather, as well as optimism over the Chancellor’s beer tax cut in the March Budget.

According to the organisation, the rise also means that the Chancellor collected £16m more in beer taxes (duty and VAT) in the past quarter despite the 2% cut in beer duty.

Brigid Simmonds, chief executive of the BBPA, said: “After many years of disappointing figures it’s great to see a great British product reporting such a strong third quarter performance. There is a still a way to go, but with increased investment and a fairer tax regime, we can build for future success. With the Beer Duty escalator cancelled by George Osborne, and tax revenues up, there is a real opportunity, if we have another freeze next year.”