Meon Valley MP Flick Drummond has welcomed the Government’s plans to reform Small Breweries’ Relief as she thanked the Treasury for listening to her concerns over the issue.

Ministers and officials took into consideration the views Ms Drummond and others raised about a reform of the system which local brewers had warned could harm the industry.

Initial plans to reduce the threshold where brewers receive a 50% reduction in beer duty from 5,000 hectolitres (hl) a year, or 900,000 pints, to 2,100hl were scrapped.

Instead of a sharp increase in the duty brewers pay, there will be a threshold of 2,500hl above which duty paid will gradually rise.

Ms Drummond has spoken to local breweries in her constituency who are largely happy with the review.

She said: “I am very pleased that the Treasury looked at this again, took on board what I, breweries and other MPs have said and acted to set the threshold at 2,500hl.

“It does mean some smaller breweries will pay more to the Treasury than before however, the taper has been extended to 100,000hL or 18 million pints, which means the 5,000cl ‘cliff edge’ for relief is gone and this will act as a big incentive for breweries to expand.

“After three years of consulting, the decision will also give certainty to the sector and this is welcome as small breweries in Hampshire contribute to the economy and generate jobs.”

The reforms are likely to take effect from February 1 2023.