Bargain Booze will take 1p off the price of a pint of beer from Monday as it passes on the drop in duty in this week’s Budget.

The price drop will be implemented across Bargain Booze’s network of 600 franchisee operated off-licences and convenience stores.

Based on sales of 100 million pints of beer in 2012, Bargain Booze said the move would save customers more than £1m.

On Monday, Bargain Booze will also kick off a week-long £500,000 national TV ad campaign to draw attention to its deals.

It follows on from the success of a TV ad campaign it ran in the two weeks before Christmas last year.

“Our Christmas campaign was a big success for our franchises. It drove footfall and increased sales across our retail estate,” said Bargain Booze marketing director Adam Burnett.

Separately, independent brewer J W Lees said on Thursday it was cancelling its wholesale price increase for 2013 in light of the Budget cut. Its wholesale beer prices were set to increase 6p/pint from Monday – an increase of 10p/pint for customers.

“We have decided that it would be unfair of us to put our prices up on any of our beers, including new product launches, despite our cost increase,” said MD William Lees-Jones.