CALLING ALL BEER LOVERS..... FIGHT TO SAVE YOUR PINT!

Derby Brewing Company are deeply concerned by the announcement that it will reduce the threshold at which Small Brewers Duty Relief starts to taper from 5000hl of annual production to 2100hl. This represents a huge threat to the livelihoods of many small brewers, who are already facing existential threats posed by Covid-19. As well as a threat to beer quality and choice for beer lovers everywhere! In the current climate this could make many brewers unviable, potentially increasing the price by pint by up to 70p. 

This move has long been agitated for by The Small Brewers Duty Reform Coalition, who are led by Rupert Thompson of Hogs Back Brewery. They, and a number of larger, regional breweries, stand to benefit from a flattening of the duty curve, paid for at the expense of smaller brewers producing between 2,100 to 5,000hl annually, who don’t benefit from their same economies of scale.

Their actions are purely self-interested; they do not, as they claim, seek to make beer duty payments fairer, but to pull the ladder up and prevent smaller brewers from benefiting from duty relief that they themselves have already received. There are around 150 breweries in the UK who sit between 2,100hl and 5,000hl of production volume, and who will under the proposals announced today see the beer duty they pay double. 

There's already been a strong criticism of the change from The Society of Independent Brewers, and a number of prominent brewers have already come out against it. This move will cause irreparable damage to the beer industry, and destroy the livelihoods of so many who have worked so hard to improve the fortunes of British Beer. Many small breweries, who are already having to lay off staff will now face higher duty at a time when they are already teetering on the edge of oblivion. 

There is also no logic to this from the treasury as it will close breweries and cost jobs, at very least brewers will scale back again contracting and costing tax revenues. Meanwhile the larger brewers will benefit which only increases profit for shareholders. 

It could be said these brewers can’t complete on quality so have used their influence to hurt the small brewers in another way, with those more aggressive likely to use the cut to further undercut the smaller brewers on price (as they already do) whom will have no option but to increase their prices, potentially forcing them out of business. 

As a result, we will be left with less choice and poorer mass-produced bland beers.

We believe instead in order to promote growth the treasury should have instead created another band of reduced duty above the 5000HL as there are many breweries with demand who choose not to grow past the 5000HL, as at a small scale the full duty rate would make it unviable to grow, as once you pass the threshold all beer, even by 1 pint all beer is charge at the full duty rate. This move will only hurt the treasury, the industry, employment and choice of quality beer available. 

Today we have arguably the best brewing industry in the world and some of the best and most loved beers which are exported the world over, many who would become unviable through these changes. Of course, exporting is something that will become all the more important going forward and something that should be helped to prosper not threatened in this way. 

With more brewers in Derbyshire than any other country this will have real impact here in Derbyshire and cost jobs locally, something which in the current climate no one can afford!  

We still have time to make our voices heard, so here at Derby Brewing Co we urge everyone who loves beer to voice your concerns through social media, contact your MP’s and leave the treasury that we will not accept a return to bland and average beer!