LOCAL cider makers are set to experience further financial pressure with the recent budget announcement that alcohol duty on cider will be increased by 10 per cent, compared to two per cent on wine, beer and spirits.

Barny Butterfield of Sandford Orchards, Lower Parks Farm, Fordton, Crediton, said it was "sad" news.

Barny, who sells cider and apple juices from locally-sourced apples, told the Courier: "The duty rise on cider is sad news.

"It fails to distinguish between the mass market and budget drinks which purport to be cider and craft scale artisan production with which this part of Devon is blessed.

"The Chancellor claims he has raised duty to be 'more in line with beer' but this is false on two counts; first small scale breweries receive a huge duty discount, something not available to cider makers and the cost of production for cider is far greater than for beer.

"Whereas 30 kilos of barley will make 350 pints of beer you need 300 kilos of apples to make the same amount of cider.

"This tax punishes craft, only to benefit global beer, wine and spirit importers.

"Its crazy to attack an native industry which is so clearly sustainable, employs so many people per litre produced and - dare I say it, is the finest drink known to man!"

John Reddaway, of Reddaways Farm Cider in Chudleigh, commented: "We sell the cider as a sideline. We are a farm first and foremost, so it's not going to impact on us as much as the bigger producers but it will have an effect on sales. Cider is a West Country drink and this is a tax on the West Country."

Devon County Councillor Will Mumford, cabinet member for economic planning and strategic regeneration said: "Devon's small food and drink producers have been struggling in this recession and have made great efforts to invest in their marketing and workforce to help their products find a wider market.

"It is therefore all the more disappointing to find that the budget effectively penalises these small businesses with a punitive levy, which could cause increased hardship in an already hard pressed rural economy.

"Devon County Council is supporting the sector by developing a national campaign to promote the county's food and drink and the main sponsor of the South West Food and Drink Festival.

"Further investment is being made in the Celebration of Food in October. We are also supporting small businesses through the 'Website Health Check Service' which reviews marketing strategies and offers advice on how to improve their online presence to reach new markets."

Commenting on other budget announcements, he added: "We welcome the move to set up a green investment bank as this could help stimulate a low carbon economy. Investment into green technologies is critical – it's a growing sector for the Devon economy and provides us with opportunities such as the Atlantic Array.

"The £35m university enterprise capital fund is also a positive step; this could offer scope for developments such as Science Park to innovate and benefit from closer collaboration between commerce and higher education.

"However, the staggered increases in fuel duty are likely to cause further hardship to rural communities, and will inevitably impact on our tourism and distribution sectors.

"The issue of housing affordability is also key to our economy and providing young people with access to proper accommodation is also vital.

"With zero stamp duty for first time buyers, it is a step in the right direction, but given the scale of the issue in Devon, this is little more than a small gesture.

"It is also disappointing to note there is no further support for improving the roll out of rural broadband which needs to underpin our rural economy and will provide for future growth.

"Equally, the absence of any incentives to support research and development and knowledge based employment is both short sighted and discouraging."

Julie Girling, Conservative MEP for South West England, expressed her concern for the cider industry in the region following Alisdair Darling's budget announcement.

The announcement will see the 10 per cent increase in tax above inflation slapped on all cider products from midnight on Sunday, March 28.

With a high percentage of Britain's cider production focused in the South West, local MEP Julie Girling has expressed her concern over such a move.

She said that while the increase in cider duty was not the most pressing issue in this budget, she felt it was important to people working in the cider trade in the South West who would now be worrying about the impact of this announcement on sales and jobs.

She added: "It is yet another example of the Government's disregard for people in rural areas. Alisdair Darling doesn't see us as core Labour voters and he treated us accordingly in this year's budget."

alan-quick@crediton

couriernewspaper.co.uk