Cotter argues for rate relief and extended PBD

The government is being urged to protect Britain's local pubs and microbrewers from closure.

In support of CAMRA's National Pubs Week, Brian Cotter, Liberal Democrat small business spokesman, tabled a parliamentary motion to extend the level of progressive beer duty (PBD) and allow local authorities to grant up to 100 per cent rate relief to struggling community pubs.

In an early day motion presented in Parliament he called for the maximum level of PBD to be upped to 122,000 barrels from the current 18,330 as permitted under EU law.

Mr Cotter also wants legislation introduced so that endangered urban community pubs can benefit from rate relief because under the current system only sole village pubs are eligible.

He said: "Independent pubs and brewers are often the hub of the community, but with around 20 local pubs closing every month, we are in danger of losing an important element of local life.

"The government should help to keep the beer flowing in these unique local businesses by allowing urban community pubs to benefit from rate relief.

"Sole village pubs already enjoy this benefit, and extending the level of PBD would boost the market for independent family brewers."

CAMRA's public affairs manager Jonathan Mail said: "We would like the limit extended so that more small brewers would benefit. It would mean more choice for consumers and would assist small brewers in getting access to the market.

"Community pubs' closure can add to the spiral of decline faced by many local economies and undermine the sense of community feeling."

The British Beer & Pub Association has been campaigning for a PBD increase, claiming it would safeguard the future of British beer.

Spokeswoman Karen Kelshaw said: "We would like PBD increased to bring the levels in line with the EU. Although 20 local pubs are closing every month, 20 more competitive pubs are opening and pub figures have remained stable."

Last month the Society of Independent Brewers' revealed that two-thirds of its members have recorded growth in excess of 10 per cent thanks to the introduction of PBD in 2002.

A statement for the government is expected in this year's budget on March 17. It is hoped that the government may extend the current cut-off which would mean that a further 27 medium-sized regional brewers could benefit from the scheme.