Commons Sense

House of Commons · Adjournment Debate

Small Breweries Relief

09 November 2020 · 1 other contributor

Opened by Liz Saville-Roberts PC Dwyfor Meirionnydd

Business & Trade

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Liz Saville-Roberts raised concerns about small breweries relief in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • Small breweries relief scheme introduced in 2002 to aid competition against large corporations.
  • Liz Saville-Roberts highlights independent breweries' challenges due to global beer companies' dominance.
  • Minister Kemi Badenoch acknowledges the craft brewing industry's importance and explains recent changes to the relief scheme.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Liz Saville-Roberts PC Dwyfor Meirionnydd

The debate focuses on the critical support for small breweries relief scheme in Wales. Liz Saville-Roberts highlights various independent breweries within her constituency, emphasising their importance and current challenges due to global beer companies' dominance over market access. The speech elaborates on historical context of the SBR introduced in 2002 to aid competition against large corporations. She expresses concern about recent proposed changes reducing relief thresholds affecting numerous small-scale operations negatively during the ongoing pandemic-induced hardships. Saville-Roberts urges for maintenance and protection of the scheme's original principles, advocating for its continuation until a comprehensive review can be conducted post-pandemic recovery.

Other contributors (1)
  • Grahame Morris Lab Easington

    Morris supports small breweries, mentioning Castle Eden Brewery and expressing concern over proposed changes to the Small Breweries Relief Scheme which could lead to closures of many small producers. He advocates against reducing the threshold for relief and warns that transitioning from percentage to cash basis could undermine long-term value.

Government Response

Kemi Badenoch

Minister Kemi Badenoch responds, acknowledging the importance of craft brewing industry in UK. She explains that while there has been a renaissance with increased number of small brewers entering market due to SBR, criticisms from within sector necessitated review since 2018. The Treasury announces changes including gradual taper and conversion to cash basis to align relief costs more accurately reflecting production expenses without abrupt increase in tax burdens for most producers until at least January 2022. She emphasises engaging with over 300 breweries during review process, dismissing claims of unfair competition advantage for large firms. Badenoch reassures the House that reforms will not come into effect until post-consultation next year and invites continued dialogue through proposed consultations.

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