Speaking in a Parliamentary debate about pubs and the hospitality sector, Julie Minns MP asked the business minister to look at how the Pub Code might be used to give pub tenants the freedom to purchase beer from local small breweries as well as exploring options for tax relief on beer and cider for independent breweries.
When Carlisle’s state management scheme ended in 1973, pubs were sold off in lots. Because of this, a large number of the city’s pubs are tied-houses, meaning they are required to buy most or all of their products from the large breweries that own them.
This has been described by local brewers as a ‘constant frustration’.
“These vital businesses are still feeling the effects of the Covid-19 pandemic, the energy crisis and the cost of living crisis, and need support,” Ms Minns said.
“I therefore want to explore every option we have to help support community pubs.
“I’d love to see more of our amazing local beers available in the area it is brewed. That means getting tied pubs to sell products from nearby independent breweries,” she said.
The Society of Independent Brewers (SIBA) wants the Pub Code to include a “guest beer right”, which would allow every pub to serve at least one beer from a small local brewery – helping community pubs attract more business.
Joe Harrison, who recently brought Carlisle’s newest brewery, West Walls Brewing Co. to the city, “wholeheartedly” welcomed the support.
“We have experienced firsthand the challenges posed by the prevalence of tied pubs in Carlisle,” he said.
West Walls Brewing Co. founders Joe Harrison and Fergus Campbell (Image: Supplied)
“Many local pubs are obligated to purchase most, if not all, of their products from the large breweries that own them.
“This arrangement has limited opportunities for small, independent breweries like ours to share our craft with the wider community.”
He explained that one of the main reasons they chose to open a brewery and taproom in Carlisle was to build a direct relationship with their customers, bypassing the traditional pub trade where access for local breweries is restricted under current conditions.
Ms Minns also used the opportunity to ask ministers to consider increasing the draught relief to 20 per cent, to not only “support our wonderful independent breweries” but also provide “a huge boost” to the UK economy.
Currently, alcoholic drinks such as beer, cider, and mead less than 8.5 per cent ABV, and packaged in containers greater than 20 litres, qualify for a tax discount of 9.2 per cent.
Research from the Society of Independent Brewers shows increasing the relief would create an extra 2,251 jobs, 20 million more pints sold and £70 million for the economy, with an increased contribution of £39 million to the Treasury.
Andrew Hammond-Whiteley, head brewer at Great Corby Brewhouse, said that while some pubs are technically allowed to serve guest beers, they are prevented from doing so by needing to make minimum sales targets of their tied brands, or by the increased cost of buying independent beers.
“A right to be able to serve guest beer would be welcome, but that alone may not be enough to allow all venues to serve independent beer if they so wish.”
He said that high energy prices and falling patronage across the pubs they supply make it increasingly difficult for the industry, with many venues having to either close their doors or restrict their hours to keep the business afloat.
“This is bad news for the communities directly affected, but also has a knock-on effect to the breweries that supply them, and we feel that this disproportionately affects smaller breweries – such as ourselves – more than the national brands.”
He said any financial assistance that can be given in the form of draught relief and small producer relief helps them remain competitive in the market.
Alison Davis, who runs Carlisle Brewing Company and is a member of SIBA, echoed concerns about the dominance of large companies when it comes to both pubs and breweries.
“I know Julie is massively keen on supporting local brewing,” Alison said.
“The brewing industry in the UK has exploded in the last few years, and people are more able to get local and independent beer.
“It’s great to be involved with the uplift, but the only problem is that a lot of smaller breweries have been bought out by big companies like Heineken.”
Alison highlighted the deceptive marketing practices of large corporations that position beers as local and independent, despite their corporate ownership.
“With big organisations come big marketing budgets. Beers are going on the bar which people think are local and independent, but in reality, they are owned by these corporations.”
Alison urged caution to punters over what they drink.
“If supporting independent breweries is important to anyone drinking beer, I would urge them to check that what they are drinking is actually produced by a small independent brewer and not a multinational organisation,” Alison said.