Family brewers back beer duty review call
The body representing Britain's family brewers is backing calls for a review of the controversial tax break for small brewers.
This comes amid fears the rise of microbreweries, set up to take advantage of the savings, could force historic regional firms to stop brewing altogether.
Pressure is mounting this week for reform of progressive beer duty (PBD) from a group of brewers who say they are losing sales to micros who use the tax break to discount heavily.
They also say the subsidy helps "maverick micros" drag down the ale category by pushing out the big players who can invest to improve beer standards.
PBD gives a 50% reduction in beer duty for brewers that produce less than 60,000 hectolitres a year, meaning a discount of up to £45 per barrel.
The tax break costs the Treasury £20m a year.
Cheshire-based Frederic Robinson estimated PBD has cost it between 5% and 10% of sales as microbreweries undercut their prices by up to £20 a barrel.
Last week Suffolk brewer Adnams led calls for reform of PBD at a meeting of the Independent Family Brewers of Britain (IFBB).
Adnams suggested fixing a time limit on PBD or reducing the level of duty relief.
The IFBB is taking a neutral line on the tax break because around half of its 31 members take advantage of PBD.
Spokeswoman Tina Snowball said a review would be a "worthwhile exercise".
She added it would support its members that wanted to lobby for the change.
IFBB chairman Paul
Wells said: "I believe most of our members have experienced some of the issues connected
to PBD and would welcome a review."
