AN INVERKEITHING beer producer has been given a financial headache after missing out on "vital support" from a UK Government scheme that is meant to support small businesses.

Kate Russell, who owns Inner Bay Brewing, asked MP Douglas Chapman to write to chancellor Rishi Sunak on her behalf, after she discovered a new tax cut would not apply to her sales.

That's going to hit her in the pocket as she explained: "One of the changes they are proposing to help support the on-trade is this new draft duty rate, which is lower than the current duty rate on beer that you would buy in bottles.

"They are saying it will start with any beer which is produced in containers of 40 litres or over. The issue we have is that, particularly for smaller breweries who are selling to smaller pubs, often use containers of 20 and 30 litres.

"So they are going to be excluded from this lower level of draft duty. As far as my business goes, I almost always use 20 litre containers when I am selling to pubs on a regular basis."

Brewers like Kate will do this to allow less waste, especially when selling to smaller pubs who cannot turn over 40 litre kegs before they go off.

She added there's also a health and safety aspect, as carrying smaller sizes forces less strain on herself.

"The concern for our business is that this draft duty rate is not going to start till the 40 litres," she said. "My request to Mr Chapman was if he could write to Rishi Sunak and please request that is was 20 rather than 40.

"It is a landmark proposal, and it will really benefit the on trade, we would just like to see it widened."

Mr Chapman commented: "When Kate contacted my office, I was surprised to learn small brewers such as her were missing out on this vital support.

"It’s unfair that local producers up and down the country are excluded from a tax cut that could help them grow their business – especially at a time when many of them are recovering from the effects of the pandemic.

"I’ve written to Rishi Sunak to highlight this issue, and have urged him to think again about penalising small producers in this way."

Kate added: "There are a lot of proposals and initiatives that already exist at the moment to help smaller businesses compete against some of the global giants, but it is generally larger businesses who will use the 40 litres, and generally smaller, craft size breweries who use the smaller containers."

After a slow couple of years due to pandemic restrictions, Kate hopes she, and other breweries like hers, will be able to benefit from the scheme.

"Fife is unique because there are a large number of very tiny breweries," she said. "Like most of the small breweries around the area, I can't really make enough, I make all I can.

"Last year wasn't great but even when we had most of our pubs closed, I think I did about 20 per cent of my sales in draft to pubs, most of it was in bottle.

"Already this year, with the pubs being open and people starting to gain more confidence again, the draft and the pub side of it has picked up again."

On Saturday, Kate took part in the Caledonian Craft Beer Merchant's 'Big Swally' event in the Glen Pavilion, which she described as a "huge event" that she hoped would bring more recognition to her business.