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How are the microbreweries incentivised to enter the industry?

Progressive Beer Duty (PBD): after years of lobbying by campaign groups, PBD was introduced in the 2002 Budget. Its aim was to encourage the development of small brewing businesses and allow those that already existed to compete more fairly with larger breweries.

PBD halved the duty paid by small breweries producing less than 30 000 hectolitres of beer per year. This limit was doubled in 2004 to 60 000 hectolitres.

The impact of PBD was to stimulate new business growth in small breweries. In 2005, almost 80 new breweries were listed in the Good Beer Guide, nearly double the previous year's total.

Seen in numbers of breweries, this shows that the policy has been a success.

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