Yesterday I had the pleasure of visiting two successful independent breweries in Beddington to hear about their exciting plans for the future, how they've coped with COVID-19, and their concerns around proposed changes to Small Breweries' Relief.
Signal Brewery and Anspach and Hobday Brewery sit side-by-side on Stirling Way and Valley Point Industrial Estate, and have each developed strong business models that promote local beer brewed in the community. My team and I stopped by at the end of the day to speak with both breweries (and to sample what they have to offer - would definitely recommend!), and to learn more about the work they have been doing.
I've also had the opportunity to visit Mitcham & Carshalton Rugby Club, and was pleased to see Signal is one of their brand partners, and on tap in their Clubhouse!
I recognise the important role that local independent breweries play in the area, and was therefore concerned to learn more about the potential impact that the proposed changes to Small Breweries' Relief [SBR] will have on the future of businesses such as Signal, and Anspach and Hobday.
The SBR - the progressive tax system that revolutionised brewing and allowed small breweries to grow - grants small breweries a 50 per cent reduction on the beer duty for those producing less than 5,000 hectolitres of beer in a year – which is about 900,000 pints. It means that smaller breweries pay a more proportionate amount of tax on the small amount of beer they product compared to the global giants.
However, there are concerns in the industry that, under the potential plans for changes announced by the Government in July, the 50 per cent threshold will be reduced from 5,000hl to just 2,100hl, which will mean that over 150 small independent breweries across the UK will have to pay more tax while those larger in size will pay the same amount or even less.
Jack Hobday from Anspach and Hobday Brewery has created a petition to raise breweries’ concerns which has already attracted more than 20,000 signatures, and is being backed by the brewing trade body, the Society of Independent Brewers (SIBA).
I know how lucky we are to have excellent small breweries locally which produce fantastic beer. SBR has been a key part of their success, allowing them to compete against larger breweries, and I have taken their concerns up directly with the Minister. You can see a copy of my letter below, and I have invited her to visit the two Beddington breweries to see for herself the fantastic work they are doing.
Jack’s petition is highlighting the concerns of all small breweries on this issue and I look forward to seeing it debated in Parliament once it passes the 100,000 signature threshold.
