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“Independent breweries have been left high and dry by the government during coronavirus, so to hit them now with a proposed tax rise will be devastating.” – SIBA chief executive, James Calder
The UK Treasury recently announced changes to small brewers’ relief program, the progressive tax system that revolutionized the UK brewing industry, which will reduce the 50% tax relief threshold from 5,000hl (hectoliter)to 2,100hl.
If this proposal becomes law small breweries in the United Kingdom will have to pay more duty, while larger breweries could pay the same or less.
Responding to what could be a crushing imposition at an economically tumultuous time, Jack Hobday, co-founder of London’s Anspach & Hobday brewery, introduced a petition calling on the government to reverse the proposed tax rise for small independent breweries.
And that petition received more than 7,000 signatures in its first 24 hours.
(Anspach & Hobday Taproom – Courtesy Anspach & Hobday)
“The government has announced plans to change small brewers’ relief on duty.” Hobday told Beer Today. “They have not yet released the details of these changes, but they have made clear this change would entail some of the smallest breweries, paying more duty.”
“We are petitioning to reverse the proposed changes so that our brewery, and many others, can benefit from the certainty of SBR and not face another financial threat after we have managed through the covid-19 crisis. The last thing small brewers need at this time is the uncertainty caused by these proposed changes.”
“Independent breweries have been left high and dry by the government during coronavirus, so to hit them now with a proposed tax rise will be devastating,” said James Calder Chief Executive the Society of Independent Brewers (SIBA). “During lockdown, small brewers have seen beer sales drop by, on average, 80%, and just as they are taking their first steps back into normality, the news of a proposed tax hike has caused a huge rift in the industry.”
Bottom line this proposal is anti-growth in normal times…but with the brewing industry around the world reeling from the impact of the coronavirus raising taxes now is sheer madness.
The petition is gaining momentum fast. At 100,000 signatures, it will be considered for debate in Parliament and there are already well over 11,000 signatures.
To sign the petition, or view the current numbers, go HERE
