MPs to debate small breweries’ future

06-Sep-2022 - Last updated on 06-Sep-2022 at 09:34 GMT

Brewery relief: the scheme was first introduced 20 years ago (image: Getty/Lingbeek)

The future of small breweries is being debated today (Tuesday 6 September) as the Small Breweries’ Relief (SBR) marks 20 years since it was announced and the sector is battling the energy crisis.

Two decades ago, SBR was introduced, allowing smaller brewers to pay a proportionate amount of beer duty to the Treasury.

According to the Society of Independent Brewers (SIBA), SBR has led to growth in the number of British craft breweries and is the reason the nation has such a diverse range of beers to choose from now.

Ahead of the Parliamentary debate and in recognition of the 20 years of SBR, a one-off collaboration beer is being brewed at Five Points Brewing Co in London.

Brewers and supporters of SBR are involved in creating the beer, which will feature all British grown malt and carefully chosen hops whose names form the letters SBR – Sovereign, Bullion and Relentless – the latter being a new British hop.

Details delayed

The debate, Impact of Small Brewers Relief on independent brewers, is being led by MP Owen Thompson who is aiming to challenge the Government on the future of the scheme alongside the wider cost of living issues threatening the sector.

Last year, changes to the alcohol duty system and SBR were outlined by the Treasury, which many brewers had already factored into their business plans, SIBA claimed.

While final details were expected to be announced this summer, it has been pushed back to autumn – something the trade body said was leaving brewers in limbo and putting the delivery of these changes at risk.

This included a new draught duty rate, offering a duty discount on beer sold in pubs and offers a “gamechanger” for the industry.

Furthermore, SIBA has called for urgent action on energy and support for the sector including an energy cap for businesses as well as grants and incentives to move to green energy.

Uncertain future

Chairman Roy Alkin said: “SBR has shaped the UK’s craft beer sector, allowing small and independent brewers to set up and compete against the global brewers that continue to dominate the industry.

“It’s a privilege to join the founders of SBR to brew a special beer but this comes at a fragile time for the sector that is facing spikes in energy prices and shortages that are putting businesses at risk.

“We also face an uncertain future as the Government continues to review SBR without any certainty.

“I hope the Government will finally provide the clarity and support we need and finally tell us in the debate, what they plan to do.”