SIBA chief warns of 'irreparable' harm of beer duty regime

Irreparable damage is being done to the British beer industry by the current duty regime, according to the chairman of the Society of Independent Brewers (SIBA).

Keith Bott delivered the warning at the group's annual conference in Stratford-upon-Avon, which has been taking place today and yesterday.

He said: "The current beer taxation regime is causing irreparable harm to the British pub and, as they are our main route to market, it also threatens to damage the local brewing industry.

"The Treasury tell us their beer duty escalator is 'baked in'. I say it is half baked! Continuing to make draught beer, drunk in the socially responsible environment of the pub, more highly taxed, will serve only to increase purchases of cheap vodka for unsupervised home consumption. To quote from our film - stop the duty increases, show some pride in British beer."

The government is expected to keep in place the beer duty escalator at the Budget on March 23. This would see duty increased by two per cent above inflation - currently around four per cent.

Bott continued: "The government seems not to recognise the importance of the local pub, which supports and is supported by, local brewers. Pubs cannot continue to shoulder the ever-increasing duty increases in the current economic climate. Closures are already running at 29 a week and a further rise in the Budget would spell the end for many more."

The speech follows the release of a short film by SIBA called 'Proud of British Beer'.

The five minute piece features 25 brewers, licensees, bar staff, barley farmers, hop growers and maltsters giving their support to the cause.

Bott added: "This is a 'first' for SIBA and we are immensely proud of it. Nobody could have made a more convincing, compelling case for British beer than the brewers captured on this film. Their pride in their beer, and the pubs that sell it, jump out from every frame and will be felt, and we hope shared, by all who view it."

A copy of the film is being sent to all MPs this week as a DVD and via a link to its online presence.