Small brewers coalition launches review to support duty relief campaign

By Michelle Perrett

- Last updated on GMT

Review launch: small brewery coalition bids to tackle rates
Review launch: small brewery coalition bids to tackle rates

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The Small Brewers Duty Reform Coalition (SBDRC) is to launch its independent review to support calls to review a tax policy for small brewers.

The initiative was launched at the beginning of the year in a bid to improve the discount on beer duty for small brewers, known as small breweries’ relief (SBR).

SBDRC’s main aim is to encourage the Government to review tax policy for brewers. The group has commissioned consultancy Europe Economics to undertake the review, which is expected to look at how to ensure fair competition, sustainable future growth and diversity in the sector.

An online survey will be launched shortly allowing all brewers the opportunity to take part in the review. Key industry stakeholders such as SIBA and CAMRA are also being consulted.

The coalition has grown to more than 60 breweries with new members including Portobello Brewery, the Edinburgh Beer Factory, Dartmoor Brewery, Kirkstall Brewery, Wimbledon Brewery and Pilgrim Brewery.

Wimbledon Brewery founder Mark Gordon said: “As a brewery with strong export ambitions, we welcome the independent review and hope it will help remove some of the obstacles to growth that the current system presents.”

Rupert Thompson, co-chair of the group, said: “We are delighted to secure Europe Economics to undertake this much-needed independent review that will be concluded by September in time for further discussion between key stakeholders ahead of the Autumn Budget.’

Fellow co-chair Collin Wood added: “With a record number of new breweries opening in 2016, it is crucial that SBR is fit for purpose for the future sustainability of the small brewer sector. We hope this independent review will deliver options to build on the success of SBR and improve the current structure to ensure this is indeed the case.”

SIBA has for the review to include a full analysis of access to market for small brewers. 

"This is an essential factor to consider in reviewing the effectiveness of SBR. Small Breweries’ Relief was intended from the outset to offset both the higher production costs faced by small breweries and the difficulties of gaining access to market they face. This is as valid today as it was in 2002 when the Relief was introduced, especially given the closure of around 10,000 pubs and a significant switch to the off-trade during this period,” said Mike Benner, managing director, SIBA.

 

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