Orchards threatened by cider tax hike
SOMERSET'S traditional cider industry has reacted angrily to plans to heap extra duty charges on to the county's famous brew.
A number of MPs have signed a commons motion suggesting that the price of a pint of cider should increase by 29p - in spite of the fact that the industry is battling its way through a recession.
Labour MP Alan Meale, who made the proposal, believes the treasury could raise an extra £400 million per year by bringing cider duty in line with beer.
But cidermakers are concerned that the move could be ruinous to farmhouse producers. They claim the hike in duty could result in job losses and even the demise of Somerset's landmark orchards.
Julian Temperley of Burrow Hill Cider near Martock said that, as the duty would be charged on cider containing five per cent alcohol or more, small-scale makers would be worst affected. Farmhouse cider is usually around six per cent alcohol and the brew would lose its artisan appeal if makers start tinkering with its ingredients, he claimed.
"The cider industry should be very worried. The prospect of a 300 per cent increase in tax is very frightening, especially for smaller businesses," Mr Temperley said.
"Bigger, industrial makers can adjust alcohol content with minimal fuss but artisan makers pride themselves on producing cider with nothing but pure apple juice. The very appeal of artisan cider is the fact that it isn't messed about with - the alcohol content depends on how much the sun shone during the previous summer."
According to the National Association of Cider Makers, one of the main reasons for cider duty being less than that for beer is because the cost of production is far greater. The organisation also said that recent investment in orchards has made a huge contribution to the rural economy the landscape.
Mr Meale said he would expect some kind of tax relief to be included to reduce the impact to small businesses but Mr Temperley said he was not convinced.
"If orchards are to survive there absolutely must be a sensible formula to protect smaller makers but I fear the suggestion of relief for small business is nothing more than lip service and should be ignored at this point.
"The impact on the multi-nationals should also be considered. They employ local people and buy apples from local orchards," Mr Temperley added.
The early day motion has so far gained support from ten MPs; eight Labour, one Independent and one Liberal Democrat. Oddly, four Labour MPs backing the motion, Brian Jenkins, Bill Etherington, Ronnie Campbell and Rudi Vis, are members of the All-Party Parliamentary Cider Group.
Mr Temperley added: "It is very worrying. A move by eight Labour MPs suggests that somebody has been instructed.
"This seems to be a money-making move that could result in an industry being shot down because of a lack of understanding of the rural economy."
Mathew Manning
mmanning@bvmedia.co.uk







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