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Evaluating the impact of progressive beer duty on small breweries: a case study of tax breaks to promote SMEs

Wyld, John, PUGH, Geoffrey and Tyrrall, David (2010) Evaluating the impact of progressive beer duty on small breweries: a case study of tax breaks to promote SMEs. Environment and Planning C: Government and Policy, 28 (2). pp. 225-240. ISSN 0263-774X

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Abstract or description

We examine whether the 2002 introduction of progressive beer duty (PBD) in the UK has had its desired or predicted effects. The purpose of the new tax relief was, in the words of the then Chancellor of the Exchequer, to “encourage one group of small businesses: the nation’s small brewers”. A dataset has been created of all small breweries in the United Kingdom from 1988 to 2008, recording the dates of their creation, progression, and, where relevant, extinction. We find no evidence of a change in survivorship consequent upon the introduction of PBD. However, there is some evidence of an increase in the rate of formation of small breweries. These findings are consistent with predictions from standard economic theory and thus may be relevant to wider policy debate on the use of targeted tax breaks to support small and medium enterprises.

Item Type: Article
Additional Information: Colette Henry, the then President of the Institute for Small Business and Entrepreneurship at the Royal Veterinary College, University of London, commented on this ex-post evaluation of Wyld, Pugh and Tyrrall (2010) as follows: “… this paper makes an important contribution to the policy literature by lending further support to the argument that financially based policy incentives can often encourage new entrants to the market place”. Guest Editorial: SME policy and the role of government, in: Environment and Planning C: Government and Policy 2010, Vol. 28, pp. 191-194; here, p.193. DOI:10.1068/c2802ed
Faculty: Previous Faculty of Business, Education and Law > Business
Depositing User: Geoff PUGH
Date Deposited: 18 Sep 2013 16:03
Last Modified: 24 Feb 2023 13:40

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