Sefton MP speaks out for small brewers in Parliament 

MP Bill Esterson voiced his support for small breweries by calling for an increase in a tax break that helps brewers compete with bigger rivals.

The Small Brewer Relief gives a discount on beer duty of 50% to breweries producing fewer than 5,000 hectolitres per year, with tapered relief up to 10,000 hectolitres.

Mr Esterson spoke in a debate in Parliament urging the Treasury to change the rules to allow small breweries to grow.

During the well-attended debate in Westminster Hall, Bill Esterson, the MP for Sefton Central, said: “I had an email from one of the three excellent small breweries in my constituency, from Les O’Grady, who runs Neptune Brewery. He employs three people. His challenge is the current tax relief, the taper which makes it very difficult for him to overcome the barrier in growing his business. There is a very strong case for pressure to be put on the Treasury to change the rules to allow these brilliant manufacturers and employers to grow as they wish.”

Mr Esterson added afterwards: “At present micro breweries like Neptune in Maghull, Red Star in Formby and Rock The Boat in Little Crosby who want to grow their production above 5,000 hectolitres a year face a steep increase in tax. Les O’Grady described this as punitive to me. I am pleased I was able to speak on behalf of the businesses in my constituency in this thriving sector and hope that the government will listen.”

There is a steep rise in taxes for brewers who produce between 5,000 and 10,000 hectolitres per year. Brewers argue they don’t benefit from the economies of scale that larger producers enjoy, and that investing in equipment and staff can be more expensive. Smoothing the duty increase curve could lead to growth that benefits the economy in other ways, such as in increased employment and therefore national insurance contributions.

Smaller brewers often use smaller interdependent local companies to work with, supporting local economies and communities, but need a higher number of staff per hectolitre of beer produced than bigger brewers, increasing costs. Bill Esterson MP added, “The lack of economies of scale as small breweries grow is a strong argument for additional support from the tax system.”

Neptune Brewery celebrates its fifth birthday over Easter weekend. The tap room will be open on all four days, with food available Friday, Saturday and Sunday.

PIC: Les O’Grady, owner of Neptune Brewery, and Bill Esterson MP in the brewery’s tap room