Small Breweries Relief

Part of the debate – in the House of Commons at 9:30 pm on 9th November 2020.

Alert me about debates like this

Photo of Kemi Badenoch Kemi Badenoch The Exchequer Secretary 9:30 pm, 9th November 2020

I will no longer give way to the hon. Gentleman. I have answered the question of who this should benefit.

On why we are converting to a cash basis, brewers provided feedback that the relief was not tracking their true production costs and was increasing in value in real terms. We also know that the amount spent on the scheme has increased significantly. The right hon. Member for Dwyfor Meirionnydd spoke about 2002. It was £15 million then; it was £65 million in 2019, even while brewing volumes have declined. A cash basis conversion allows us to review annually the value of the relief, meaning that we can track it in line with changes to industry costs.