Over 17,000 microbreweries have signed a petition to stop government plans on a tax increase. Harrogate Brewing Co. is one of many to object.
In July, Chancellor of the Exchequer, Rishi Sunak, announced plans to remove a 50% tax relief on the general beer duty rate for microbreweries.
Currently the Small Brewers Relief (SBR) is given to all microbreweries making up to 5000 hectolitres (880,000 pints) a year. Under his new proposal only much smaller microbreweries will continue to get relief.
Joe Joyce, owner of family-run Harrogate Brewing Co. said:
“There’s a tranche of microbreweries that are going to lose out on this and that’s not fair. We’re currently producing below the proposed amount but anything that adds more burden to the microbrewery is not where we want to be.”
First set up in 2002, the purpose of SBR was to help newer breweries become profitable and compete against big breweries. Now, there’s risk it could become a lot harder to even enter the beer-making industry.
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The idea was announced as part of July’s fiscal statement. It could come into affect from October when the government’s Autumn budget is announced.
Mr Joyce said:
“For a lot of microbreweries this is our lifestyle, this is our business, we are putting our houses and mortgages on the line because this is what we do. I will be surprised if other local brewers haven’t signed it.”
Grassroots organisation Campaign for Pubs, run by leading pub campaigners and publicans, is heavily endorsing the petition which can be found on the government website.
