Beer: Small Businesses

(asked on 8th February 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing a scheme similar to the Scottish Government's Brewers Support Fund.


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
President of the Board of Trade
This question was answered on 11th February 2021

The Government recognises that breweries have been acutely disrupted by recent necessary restrictions to hospitality businesses.

In January the Chancellor announced that £594 million is being made available for Local Authorities and the Devolved Administrations to support businesses ineligible for grants for closed businesses, but who might be impacted by COVID-19 restrictions, such as the hospitality supply chain. This funding comes in addition to the £1.1 billion discretionary grant for Local Authorities previously announced. Local Authorities have discretion to determine how much funding to provide to businesses and have the flexibility to target local businesses that are important to their local economies.

The Government is also delivering support to the hospitality sector and its supply chain through the Coronavirus Job Retention Scheme (CJRS) which has been extended until April; Government backed finance through loan schemes, ‘Pay as You Grow’ long-term repayments options, a VAT cut, a VAT deferral for up to 12 months, a 12-month business rates holiday; and a moratorium on evictions to protect commercial tenants.

In addition, Small Brewer’s Relief (SBR) provides reduced rates of beer duty for small brewers producing less than 60,000 hectolitres. Following requests from brewers to look again at the scheme, the Treasury is currently in the process of reviewing SBR to ensure it further supports growth in the sector. A technical consultation launched on 7 January 2021, and can be accessed at: https://www.gov.uk/government/consultations/small-brewers-relief-sbr-technical-consultation.

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