ON TUESDAY (September 6), a debate was held in Parliament on the impact of Small Brewers Relief – a scheme that has lead to the United Kingdom becoming a global leader in craft beer production.
Speaking in the debate, Aberconwy MP Robin Millar took the opportunity to call for urgent support from the UK Government for breweries and food producers.
Mr Millar has joined the Society of Independent Brewers’ (SIBA) “Make it 20” campaign to make beer sold in 30 litre and 20 litre kegs eligible for the five per cent beer duty reduction included in the budget last year.
At present, the reduction only applies to beer sold in kegs of more than 40 litres.
READ MORE:
Llandudno Junction man guilty of Deganwy assault to pay more than £1,000
He said: “My constituency of Aberconwy is home to some of the finest—I might say the finest—local food and drink producers anywhere in the UK.
“I am proud to support that industry and sector in my constituency. I welcome the bold reforms to alcohol duty, and the support for pubs and brewers, in the last budget.
“I am also proud to support SIBA, in its ‘Make it 20’ campaign, which seeks to apply a five per cent reduction in beer duty to 20- and 30-litre kegs.
“The company is in my constituency and sells more than 70 per cent of its annual production in 20- and 30-litre kegs.
“As it has grown, it has made a significant investment in 600 30-litre kegs.
“Most of its beer is sold to small independent bars, pubs and restaurants, which rely on smaller containers in order to offer variety and keep the beer fresh.
“Given that most of the brewery’s beer is sold in 20 and 30-litre kegs, it will not benefit from the five per cent reduction in beer duty.
“This is a business that, with support from the UK Government, has overcome the challenges of the pandemic, and has invested in its future and in the town of Llandudno in my constituency.
“Over the last 18 months, Dave Faragher, the managing director and founder, has increased his team from seven to 10 employees, two of whom originally started with the UK Government’s kickstart scheme.
“I urge the Government to review the arbitrary nature of small brewers relief and to make 20-litre and 30-litre kegs eligible for the five per cent reduction in duty.
“Small brewers and hard-working small businesses at the heart of our communities, such as the Wild Horse brewery in Llandudno, deserve that consideration.”
Mr Millar also spoke in support of businesses who have contacted him about a three-fold increase in the cost of CO2 – a gas that is vital in food and drink production and distribution.
He said: “Just this weekend, small breweries learned of a threefold increase in CO2 prices and a likely supply crunch at the end of September.
“Production of CO2 in Billingham—one of the largest producers, which is responsible for about 60 per cent of UK production—will end and Ensus will stop its production for three weeks.
“As we know, CO2 is vital not just for breweries, but for the entire food and agricultural sector, which falls within the purview of the Department for Environment, Food and Rural Affairs.
“I therefore must take this opportunity to call on DEFRA to take urgent action, as happened last year—it has shown itself able and willing to do so—to secure CO2 production and supplies, and to reduce costs.”
Following the debate, Wild Horse Brewing Co managing director and founder, Dave Faragher, said: “We welcome Robin’s support for the cross-Party ‘Make it 20’ campaign.
“It is vital for small and independent breweries to be on level playing field with the global producers, so we hope that action is taken to make 20- and 30-litre kegs eligible for the five per cent reduction in beer duty.
“We also hope that urgent action is taken to secure CO2 production and to reduce costs.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here