MP calls for extension of tax incentive

April 27, 2006: The introduction of tax relief for small breweries in 2002 has increased the number of small and regional brewers in the UK by 130 to 570, according to new figures from CAMRA.

Small breweries' relief means small brewers pay reduced tax on the beer that they produce. Under the current system all brewers producing less than 60,000 hectolitres a year benefit.

Now Liberal Democrat MP Greg Mulholland (Leeds North West) has tabled a Parliamentary motion backing Small Breweries' Relief, and is calling for the threshold to be extended up to 200,000 hectolitres so that even more brewers can benefit.

CAMRA chief executive Mike Benner said: “Small breweries' relief has helped create renewed interest in real ale, and this can only be good news for all those who care about real ale.

“It is a sad fact that over 80 per cent of the beer drunk in the UK is produced by four global brewers. Small breweries' relief is crucial in helping Britain's small and regional brewers compete against the huge economic muscle of the global brewers. Small Breweries' Relief should be extended to the 200,000 hectoliters to help support more of Britain's independent brewers.

“Thirteen EU countries provide tax relief for small breweries producing up to 200,000 hectolitres annually, and CAMRA is urging Britain to follow the lead of other beer-loving nations such as Germany.”

On the date of release 37 MP's from all parties have so far signed an Early Day Motion calling for Small Breweries' Relief to be extended.

Mr Mulholland said: “The relief for small breweries is, of course, welcome. It has helped microbreweries produce many excellent brews, including some local to me.

“However, there are small independent breweries that do not currently qualify for such relief. It is time they were given the same support levels to allow all small breweries to flourish.

“There is currently a perverse disincentive to be successful. We should not be holding these independent brewers back in this way.”