Tax hikes ‘could send small breweries to wall’ says MP
EFFORTS to protect small breweries from tax hikes reached Westminster last week amid fears they could drive dozens of independent Welsh brewers to the wall.
Dwyfor Meirionnydd MP Liz Saville Roberts (pictured) led a debate in the Commons in an attempt to rally opposition to taxation changes which could affect 90 small breweries in Wales.
She said distinctive local brands such Cwrw Llŷn in Nefyn, and Cader Ales Brewery in Dolgellau, were hugely important to the Welsh drinks industry but now faced a bleak future.
Also un under threat in her cons constituency we were the likes ofM of Moose, Purple Myrddins Brewery, Br Bragdy Lleu, Sn Snowdonia Bre Brewery and Cwr Cwrw Ogwen, she sa said.
All are set to pay more tax because of a proposal by the UK Treasury to cut Small Breweries’ Relief.
“Cutting this vital support now, when there is such uncertainty in the economy, could mean the death knell for many small, independent brewers across Wales,” said the Plaid Cymru MP.
“These small breweries are rooted in their communities, supporting many local jobs, and enhancing the offering of local hospitality providers, including our pubs.”
Small Breweries’ Relief was introduced in 2002 to help craft breweries compete with global brands.
The relief currently gives any brewer producing less than 5,000 hectolitres (880,000 pints) annually a 50% discount on beer duty.
The threshold is now being cut to 2,100 hectolitres.
Across the UK it’s estimated 150 small, independent breweries will see their tax bills rise.
Even those not immediately effected may see their tax reliefs eroded over time.
Myrddin ap Dafydd, a director at Cwrw Llŷn, said: “The Westminster government will damage not only the Welsh beer producing companies but also the whole tourist experience here in Wales.”
The Treasury estimates 80% of breweries will be unaffected by the proposed changes.
A spokesperson added that small breweries will “still benefit from the relief as they gradually expand their businesses”.