Budget details as revealed today by Chancellor Rishi Sunak are a “disappointment” for the country’s struggling small breweries and their supply chain, according to the Society of Independent Brewers (SIBA).

James Calder, Managing Director of SIBA, said: “Today the Chancellor spent an extraordinary amount of taxpayer money to help keep the economy moving and protect jobs, pledging nearly $ 59 billion. pounds sterling to policies including holiday extensions, continued reductions in business rates, hospitality grants of up to £ 9,000 and a range of investment initiatives.

“While this is useful for the large hospitality sector, it does nothing for the struggling independent breweries in the country, which were in desperate need of direct tax cuts and targeted subsidies to help them survive until the end of the day. reopening of the economy. What is the point of helping hospitality if there are no dynamic, varied and local beers when the economy reopens?

“As a result of today’s announcements, more breweries are more likely than ever to close, just as there is light at the end of the tunnel.”

Calder noted that breweries and wet pubs will not benefit from the extension of the VAT reduction because it does not apply to alcohol.

He said: “Breweries will continue to pay full business rates, VAT and tariffs and will not receive a specific subsidy – and while the freeze on beer duties is welcome, the Chancellor has always intend to increase the tax bill of at least 150 small breweries from the next. January with ruinous changes in relief for small breweries, jeopardizing jobs and the recovery.

“The payback loan program that advances CBILS and Bounceback loans will benefit and many breweries will benefit from it, but will continue to take them into debt, rather than direct grants, hampering growth and investment in the sector for brewers. years to come.

“Start-up grants of up to £ 18,000 per host business will help businesses plan, but again it doesn’t appear that breweries are automatically included in the definition, so at the mercy of discretionary grants. Different local authorities can grant aid to companies, one no. We can do this in weeks, others in months.

“The announcement of the ‘super deduction’ policy, granting companies that invest in new qualifying plant and machinery a 130% capital deduction on their tax bills, may be beneficial, but the details of the taxes that may be offset are not yet published.

“While this budget will likely be celebrated by the hospitality industry at large, it is a disappointment for the nation’s struggling small breweries and their supply chain, which have once again been de-prioritized by the chancellor. “

Related Articles:

Source link

About The Author

Related Posts