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Government Considers Easing Access for Local Breweries in Pub Sector

The UK government is exploring options to facilitate the sale of independent local beers in pubs, as part of efforts to invigorate the struggling pub industry. Chancellor Rachel Reeves is taking steps to enhance the sector’s viability amid rising consumer demand for a broader selection of craft brews.

Currently, many pubs operate under the “beer tie” system, which limits them to selling only the brews supplied by their owning companies in exchange for lower rental costs. This arrangement has long frustrated pub owners and patrons alike, with many expressing a desire for increased availability of independent beer options.

A source from the Treasury has indicated that Reeves is contemplating measures aimed at “expanding access” for small brewers and may announce a consultation with industry stakeholders in her upcoming budget proposal. The goal is to provide pubs with more flexibility to order from local breweries, thereby attracting more customers and enhancing choices for beer drinkers.

For any policy changes to take effect, they would need to be drafted into legislation, but a shift toward encouraging independent beer sales would be a significant relief for craft brewers. These producers are currently challenged by the growing presence of larger global brands masquerading as craft beer.

The Society of Independent Brewers and Associates (SIBA), a representative body for smaller brewers, has pointed out that the restrictive selling practices hinder producers’ abilities to supply local establishments. This is a widespread issue, even in “free house” pubs that are technically entitled to source from any brewer they choose.

Andy Slee, the chief executive of SIBA, emphasized the importance of a government review into the challenges faced by independent breweries. He believes it would represent a critical first step in finding effective solutions that ensure all breweries can access draught beer markets, thereby meeting consumer demand.

“There is significant consumer interest in locally sourced independent draught beer alongside international brands, but access is often limited due to the dominance of a handful of globally owned breweries,” Slee noted.

In addition to advocating for improved access to local beers, SIBA has called for an increase in draught beer tax relief from 9.2% to 20%. This change could alleviate tax burdens on pints served from taps, with the government having raised the relief from 5% to 9.2% earlier in March 2023.

Further support for smaller producers may be on the horizon as the government is anticipated to roll out measures in the upcoming budget that would reduce the costs of accreditation for small spirit makers, particularly for products like Scotch whisky and Irish poitín. Currently, these “geographic indicators” come with a steep fee of £7,000 every two years, but potential reductions could help ease financial pressure on these producers.

Source
www.theguardian.com