Sussex microbrewer calls for sliding duty

The tiny Cuckmere Haven microbrewery in Sussex has called on the Government to abolish duty for small brewers.

In his pre-Budget statement last November, Chancellor Gordon Brown made his clearest indication yet that a sliding scale of duty would be introduced in April's Budget.

But Cuckmere Haven Brewery believes duty should be abolished altogether for small brewers.

The petition read: "We support the case for progressive beer duty but add that small local breweries should be exempt totally from duty. The additional burden of duty upon tiny businesses racked by employment requirements, VAT, floods and foot-and-mouth disease has led to bankruptcies in the small brewing sector."

Alan Edgar and Stefano Diella from Cuckmere Brewery delivered the petition to 10 Downing Street accompanied by Norman Baker MP, Leslie White, director of the 1066 Brewery in Bexhill on Sea and Stuart Neame, vice chairman of Kent-brewer Shepherd Neame.

The Government has admitted duty is a problem for smaller brewers. In the pre-Budget statement Gordon Brown said: "Britain's several hundred small breweries make a valuable contribution to the nation's cultural heritage, particularly in rural communities where the majority are located."

Progressive duty is likely to be calculated on the basis of barrelage, with a percentage discount for brewers producing less than, for example, 50 barrels per week. The percentage discount would then get smaller as barrelage increases up to an agreed maximum after which the full duty would be applied.

Many trade experts believe progressive beer tax enables small companies to survive, compete, drive up quality, and create local employment.