Grogan pushes for PBD review
Parliamentary Beer Group chairman John Grogan MP is to invite brewers to a House of Commons meeting to push for a review of progressive beer duty (PBD).
Speaking exclusively to Thepublican.com Mr Grogan said he was looking to push the issue further to force a review of the system, which acts as a tax break for brewers who produce under 60,000 hectolitres of beer a year.
His move comes as leading brewers have claimed that the PBD has created an uneven playing field, especially for brewers operating just above the threshold.
Mr Grogan told Thepublican.com there is significant interest in Parliament on this issue.
"What I will now be looking to do is invite several microbrewers and family brewers in front of the Beer Group executive [which consists of over 20 MPs and Peers] to talk about it," he said.
"It is clearly a delicate issue for the industry. PBD has undoubtedly led to a resurgence in the number of microbrewers with strong local identities.
"But as ever with these issues, there are big debates over cut-off points and sliding scales."
Earlier this month Greg Mulholland, MP for Leeds North West, tabled a Commons motion in Parliament calling for an extension of PBD to 200,000 hectolitres. The motion has now been signed by 70 MPs.
In March a group of brewers, including Adnams and Refresh UK, sent a submission to the Chancellor of the Exchequer calling for a review of the measure.
They believe many microbrewers simply use PBD to undercut the bigger brewers, rather than use the tax break to invest in the category.
Nick Stafford, commercial director of the Society of Independent Brewers, said he would welcome a review of PBD.
"We will look at anything which increases the competitiveness of the beer industry - it is that that will keep the beer industry going," he said.
"But we support PBD as it enables the small brewers to survive financially and to develop the British beer industry. The bigger brewers are bleating about PBD while they are reporting impressive financial results."
