Independent Brewers issue open letter to Welsh Parliament cabinet secretary calling for support ‘to ensure that breweries and the hospitality sector can survive’
The Society of Independent Brewers & Associates (SIBA) have today written an open letter to Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language, calling for further support for Welsh brewers in light of the Budget announcements on Business rates. The letter reads;
Dear Cabinet Secretary
The Society of Independent Brewers and Associates (SIBA) represents around 700 independent breweries across the UK including around 40 in Wales. Our members operate at the heart of our local communities and supply pubs, clubs and shops across Wales. They are directly impacted by changes to Non Domestic Rates (NDR), especially in the hospitality sector.
This week, the SIBA Board took the unprecedented step of jointly writing to the UK Chancellor of Exchequer to express our deep concern at the impact of last week’s business rates decisions on the pubs sector. We have asked the Chancellor to work in partnership with Wales to provide further immediate support to help the industry, including widening the business rates discount and delaying the revaluations. I have included a copy of this letter for your information.
As you have indicated in your written statement this week, smaller businesses will benefit from a lower multiplier, however under your plans, relief for the hospitality will be removed.
Along with the revaluation due in April 2026, it means that there will be significant increases in rates for pubs in Wales, which could be up to 80% in some cases. This would have a significant impact on independent breweries and pubs in Wales.
As small breweries are primarily manufacturers they have not benefited from any proposed retail or hospitality based measures. Full Small Business Rate Relief (SBRR) is only available to business properties in Wales with a Rateable Value (RV) of up to £6,000, whereas full rates relief is available to business with a RV of up to £12,000 in England.
Welsh micro-breweries up to £12,000 RV typically employ only a handful of employees. Yet unless parity is offered in Wales with Full Small Business Rate Relief (SBRR), some of thesmallest businesses may have to pay up to £6,000 more in business rates compared to a small England based brewery.
For small breweries in Wales, competing in a UK wide craft beer market, it is a significant disadvantage. Moreover, the effect of this policy is to encourage pubs in Wales to buy English beer, as it could be several pounds cheaper per cask based on business rate savings alone.
We are looking for continued support from the Welsh Government to ensure that breweries and the hospitality sector can survive in an environment where six pubs a week in the UK are closing and over 100 breweries were lost in the last year.
We would be keen to host you at an independent brewery to discuss this further to see how we can support businesses at the heart of communities in Wales.
Yours sincerely
Richard Naisby
SIBA Chairman
This follows an open letter sent to Chancellor Rachel Reeves from the Society of Independent Brewers & Associates (SIBA), signed unanimously by all 28 SIBA Regional Directors from across the UK, as well as all 4 SIBA Non-Exec Directors, in what is a clear show of solidarity from independent brewers facing a crisis of survival for the pubs and hospitality sector.
