As Chancellor Rachel Reeves prepares for the fiscal address, set to take place on Wednesday 26 November, the Society of Independent Brewers & Associates (SIBA) boss called on the Government to publish its review into small brewers’ access to pubs.
“It is vital the Government announces the results of this review, which could empower pub landlords, increase brewers’ access and improve consumer choice.
“Our members tell us they can’t sell directly to 60% of the pubs in their local market at a time when we know consumer demand is strong for independent beer.”
Slee added expansion of draught relief to 20% and business rates reform must also be priorities.
Crucial changes
He continued: “There are some crucial changes the Government can make on taxation and market access that could have a huge impact on independent breweries and the wider pub and hospitality sector.
“SIBA member breweries run more than 2,000 pubs, bars and taprooms and sell 80% of their beer in the on-trade - what’s good for pubs is therefore good for independent breweries.
“That is why we’re calling for an expansion of draught relief to 20% or more.
“There is also need for real reform of business rates and to set the maximum discount for hospitality.”
Small breweries would also benefit from assistance to meet Net Zero obligations through targeted grants and funding, he added.
Citing SIBA-commissioned research with the Centre for Economic and Business Research, Slee noted these measures could create 2,251 jobs, see an extra 20m pints sold in pubs and deliver a £70m boost to the economy.
“While there is good demand for independent beer profitability is extremely tough”, he said.
Uncertain market
“Despite the consumer demand for local beer from independent breweries we are still seeing businesses across the UK struggle, and too many are still closing their doors for good.
“Breweries currently pay around 40% of their turnover in tax, compared to just 10% for many online businesses - this simply isn’t sustainable.
“Reducing the tax burden on breweries and increasing access to market would see independent breweries flourish, creating jobs and boosting local economies across the UK.”
Slee warned without clear and targeted support from the Government, independent breweries would not be able to plan for the year ahead, stalling growth and investment in the sector.
“Speaking to independent brewers anywhere in the country I hear many of the same struggles, but one of the biggest issues right now is that so many are holding off on investment because they simply do not know what’s in the Budget and need to have certainty on taxation, alcohol duty, business rates and market access.”
- Don’t miss Andy Slee’s Big Interview with The Morning Advertiser here.
