Cider maker warns Shadow Chancellor of "regressive" tax burden on small producers

The founder of a prominent West Country cidery has issued a stark warning to Shadow Chancellor Mel Stride, claiming that rising taxes are jeopardising the future of small producers and community pubs across the UK.

Barny Butterfield, founder of Sandford Orchards, which produces over seven million pints of cider a year, met with Mr Stride during a recent visit to express growing concern over the impact of increased business rates and employers' National Insurance contributions.

Despite the brand's international success, including a Gold Medal at the World Cider Awards, Mr Butterfield said the latest tax rises are threatening the viability of his and similar local businesses. He described business rates as a “regressive tax” that hits small producers disproportionately.

“We are proud of what we've built here, but success doesn’t make us immune to the pressures of increasing costs,” said Mr Butterfield. “The tax burden is becoming unsustainable, and for many local pubs and producers, this could be the tipping point.”

Mr Stride, MP for Central Devon and Shadow Chancellor, agreed with Mr Butterfield, saying: “As an entrepreneur myself, I understand how tough it is out there. With Labour’s tax hikes on business rates and National Insurance, small producers like Sandford Orchards are being squeezed. The government needs to foster an environment where businesses can grow, not drown them in red tape and rising costs.”

The concerns come at a time when Britain’s beer and pub industry, a cornerstone of rural and urban life alike, is facing mounting challenges. According to the British Beer and Pub Association (BBPA), the sector contributes over £34 billion to the UK economy and supports more than one million jobs.

However, the BBPA warns that tax increases announced in the recent Labour Budget could cost breweries and pubs an estimated £650 million, on top of the already steep tax burden, with many brewers paying more than 40% of their turnover in taxes.

Mr Butterfield also discussed the broader risk to pubs, which serve as vital hubs of community life in towns and villages across the country. “We’re not just talking about economics, we’re talking about the social fabric of our communities,” he said.

In response, Mr Stride pledged his support for the Conservative Party’s "Save the Local" campaign, which aims to reverse what the party views as damaging Labour policies and relieve pressure on local businesses.

“Pubs and small producers aren’t just businesses, they are essential to our communities, our culture, and our economy,” said Mr Stride. “I am committed to championing policies that allow these businesses to thrive, not just survive.”

As the debate over tax policy intensifies ahead of the next general election, small producers like Sandford Orchards may become emblematic of a wider economic struggle - balancing fiscal responsibility with the survival of the UK’s independent business sector.