The National Associations of Cider Makers (NACM) has again called for Chancellor George Osborne to recognise the unique circumstance of the cider industry and cut duty in tomorrow’s Budget.
Chair of the NACM, Martin Thatcher spoke at a Parliamentary Reception last night and reminded parliamentarians, ministers and Government officials that the investment cycle for cider makers is measured in decades supporting the need for a long-term stability and lower rates of duty.
Fragile progress needs support
Mr Thatcher said: “We were grateful for the opportunity to present our case and for the evident interest shown by all those that attended. “We were clear on the unique features of our industry and the need to consider things like the £30m contribution we make every year into farm incomes and the more than 7,000 jobs supported directly and indirectly.
“The innovation and investment of cider makers has delivered some success, however that progress is fragile and our scale is still small compared to other sectors, hence the need for a duty reduction in this Budget and the development of a long-term policy for our industry.”
Low, stable duty regime to deliver consistent growth in government revenues
The NACM is seeking a 2% reduction in duty. In the last Budget Statement George Osborne froze the duty on alcohol, ending a sequence when the Duty Escalator meant successive above inflation increases.
Dozens of cider makers of all scales and from many rural locations shared with invited guests how a low and stable duty regime can deliver consistent and sustained growth in government revenues as well as supporting employment and broadening consumer choice.
Martin Thatcher again: “A long-term view works for everyone, and when and if we can achieve that then producers will have the confidence to plant further new orchards so that with growers we can increase the present harvest of 250,000 tonnes of UK apples used by cider makers.”
Duty exemption for small scale producers
As well as the discussion on duty, the many cider industry representatives made clear their support for the small scale producers affected by the threat to the duty exemption that allows cider makers to produce 70 hectolitres (c. 1,500 gallons) without attracting Excise Duty.
Martin Thatcher said: “The event in Westminster was a timely opportunity to repeat our support for these very small scale producers. “We are very disappointed about the EC ruling as we recognize that without the 70 hectolitre exemption many small scale producers may be unable to continue to make their ciders.”
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