Confidence is growing in the pub sector six months on from the beer duty cut, according to new figures from the British Beer and Pub Association (BBPA).

George Osborne’s decision to cut beer duty will create 10,000 jobs in the sector, mostly for young people, according to figures released by Oxford Economics for the BBPA.

In a BBPA survey, 61% of members said they will take on more staff while 76% said they will increase investment as a result of the cut. The BBPA said it expects its members to invest around £400m during 2013 to modernise its breweries and pubs.

Meanwhile, 89% of brewers said they reduced or froze prices following the Budget.

The Chancellor expects an extra 500 million pints of beer to be sold by 2016, and most of it to be brewed in Britain.

BBPA chief executive Brigid Simmonds said: “George Osborne’s historic decision to cut beer duty has given the sector a huge boost in confidence. This is vital, as we can invest, create jobs, protect pubs, and help the economy to grow.

“As we see more and more economic benefits from the policy, I hope he will be tempted to repeat the trick next year.”

Beer duty was cut by 1p at the Budget in March and the beer duty escalator was scrapped, after tax had risen by 42% from 2008 to 2013.