BeerFlex update

“Peace Time” issues - update

Spring Budget

In preparation for the Spring Budget, SIBA submitted a detailed submission asking the Chancellor to deliver a package of measures to create certainty and growth in the independent brewing sector. This consisted of:

Positive reforms to Small Breweries’ Relief which will secure sustainability, growth and jobs in the market Commitment to at least a freeze in beer duty for the duration of this Parliament Mitigations for small brewers implementing the deposit return schemes in Scotland and England, Wales and Northern Ireland A radical and wholesale review of business rates An alcohol duty review that protects the UK’s national drink, beer Proper resources for HMRC enforcement

SIBA also prepared a detailed paper on SBR and presented this to Treasury officials. SIBA also supported a One Voice letter and one from the Long Live the Local Campaign on beer duty.

Since the December election, SIBA has been targeting new MPs and held 15 face to face meetings to discuss SBR. We also briefed MPs ahead of a Westminster Hall Debate in February in which several MPs spoke in favour of positive reform.

The Chancellor announced in his Budget that beer duty would be frozen. He also said that the results of the SBR review would be announced in the Spring and that a full review into alcohol duty would be in the summer along with a review of business rates. Due to Covid-19, the Government has since confirmed that the consultation on alcohol duty and business rates will take place in the summer and further information on the SBR review will be announced in due course.

Scottish Deposit Return Scheme

In March, the Scottish Government announced the outcome of its consultation on the Deposit Return Scheme (DRS). Despite significant lobbying by SIBA and Scottish brewers, including a joint letter signed by 26 SIBA members, a petition to the Scottish Minister, meetings with MSPs and visits to members’ breweries, the Scottish Government did not make changes that addressed our concerns.

The main changes to the scheme are:

The Scheme will go live in July 2022 instead of 2021 The registration fee has increased to £360 For producers with an annual turnover of £85,000 or lower, there will be no registration fee

The regulations have been laid in the Scottish Parliament and after 54 days there will be a vote to confirm them. Ahead of the Environment Committee meeting on 29 April, SIBA produced a briefing outlining our continuing concerns especially in light of Covid-19. This included:

At this time, small breweries are at a critical crossroads because of the Covid-19 crisis and have lost 80% of their sales and will take a long time to recover if they do so at all. The Scottish Government has not addressed the concerns that brewers have raised but increased the registration fee from £209 to £360 and set any exemptions far too low, so small businesses have to pay the same as Coca-Cola and Heineken. There are no guarantees that the Scheme Administrator, which will be dominated by Global producers, will take account of the needs of small businesses.