Being seen as a partner with Labour will be critical over the next few years. We can help lead their drive for economic growth but we are presently hindered by some of the highest taxes across the UK economy.
It may come as a surprise to readers that, as well as brewing brilliant beer, Society of Independent Brewers & Associates (SIBA) members also run between them more than 2,000 pubs bars and taprooms at the heart communities across the land.
This is why we are fully behind a united hospitality sector call for a clear timetable to the promised business rates reform, together with a continuation of business rates relief until that reform is finalised.
Importance shown in Wales
For us, the importance of this second measure is highlighted by independent brewers in Wales (where that relief has been slashed) reporting an increase in bad debts from pubs paying business rates rather than their local brewer.
SIBA represents 700 independent British breweries of all shapes and sizes, producing a host of beer styles and are leading a couple of other initiatives to help them thrive in a difficult market.
It was SIBA members who successfully fought for groundbreaking legislation that split beer duty on draught and packed beer, allowing for economic rebalancing between pub and supermarkets.
To build on the 9.2% duty differential already in place, we recently led a coalition that included brewers, publicans and beer drinkers to commission new research on the role this measure could play in increasing jobs, securing our community pubs and reviving the economy.
The work was conducted by the Centre for Economic & Business Research (CEBR) and looked at the case for widening the duty gap to 20% and beyond while freezing the base duty level.
More money for Treasury
At a time when Government is searching for growth, the results were revealing. In layman’s terms, moving to a 20% gap would create 2,251 jobs in both the UK brewing and on-trade sectors. It could see a further 20m pints sold in the more regulated environment of the pub that could bring into the Treasury an extra £39m in additional taxation when you include the wider supply chain.
If the gap increased to 30% then 4,351 jobs would be created in brewing and on trade with 39m more pints sold in pubs. The Treasury would receive £76m a year in taxation on the same basis.
We were delighted to work with the Campaign for Real Ale (CAMRA) and the British Institute of Innkeeping (BII) on this because all of us see the value in the independent brewing and pub sectors and the thousands of people we represent.
No one should kid themselves that, on its own, this will be a panacea to our challenges but when the Treasury searches for more money, I’d suggest looking to the online world before putting further strain on the much-loved community assets all we run as businesses.
- Finally, look out for some SIBA news in the week beginning Monday 21 October in The Morning Advertiser. I am sure I can count on readers’ support for independent brewers when we can say more.
