SIBA: Majority of the public call for the Government NOT to increase taxes on small breweries at the Budget

LONDON, Oct. 20, 2021 /PRNewswire/ -- New polling by Savanta on behalf of the Society of Independent Brewers (SIBA) has shown that a clear majority of the public think that the Government should avoid increasing taxes on small breweries at the Budget, and should instead support the recovery of those impacted during the pandemic (58% vs 11%).

This includes 57% of Conservative voters, who clearly feel that the Chancellor should back not burden small breweries as they emerge from the pandemic.

The poll comes as concerns grow in the craft and independent brewing industry that the Government might confirm changes to Small Breweries' Relief (SBR) at the Budget on Wednesday 27^th October 2021, as part of wider reforms to beer and alcohol duties.

SBR has had a profound effect on the craft beer industry. It has enabled independent brewers to flourish, and compete in a marketplace dominated by global brands.

The Government has been considering reducing the threshold for the 50% rate in beer duty from 5,000hl to 2,100hl, which could mean that over 150 small breweries across the country may have to pay up to £44,000 extra in beer duty every year. Meanwhile, a proposed move to a cash basis could also lead to the support for all brewers receiving SBR being eroded away, as there will be no guarantee the rate will change or keep up with inflation.

The proposed changes would hit breweries already dealing with rising energy prices, HGV driver and CO2 shortages, as well as repayments of Covid-19 support and the recently announced increase in National Insurance Contributions, all of which have been hitting the sector over the past few months. An additional tax increase on small breweries will put the international success story of this industry in danger.

On the results, James Calder, Chief Executive of SIBA said:

"Small brewers are trying to plot a route forward despite many challenges over the past couple of years, but are being hampered by the cloud of uncertainty hanging over them about SBR. We have been saying for some time that this Budget should back not burden small breweries and it's great that the public – and Conservative voters – think so too.

"The uncertainty over what will happen to SBR is causing a great deal of anxiety in the sector, making some reconsider their future growth or job plans. There is a great opportunity here for the sector to contribute to Building Back Better and levelling up, but instead the Government is putting a major British success story at risk.

"We urge the Chancellor to listen to small breweries, and the public, and help small breweries across the country to thrive."

Notes to editors.

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About SIBA 

SIBA, the Society of Independent Brewers, was established in 1980 to represent the interests of the growing number of independent breweries in Britain.

SIBA currently represents around 750 independent craft breweries with a vision for the UK to have a vibrant, thriving and sustainable brewing industry. SIBA want consumers to choose, and be able to choose independent beer at a fair price to all.

As well representing our independent craft brewing members in the press and lobbying government on behalf of brewers, SIBA also run regional and national independent beer awards for cask, keg, bottled and canned beers, host regional meetings for the benefit of members as well as the UK's biggest beer & brewing trade event BeerX UK.

SIBA was instrumental in campaigning for Progressive Beer Duty (PBD), which came into place in 2002. This beer duty system allows smaller breweries to pay less tax on their products and has led to an explosion of new breweries in the last decade.

Methodology

Savanta ComRes interviewed 2,092 UK adults aged 18+ online between 15th – 17th October 2021. Data were weighted to be representative of UK adults. Savanta ComRes is a member of the British Polling Council and abides by its rules. Of the total sample, 605 reported voting Conservative the previous 2019 vote.