A PRINCETOWN micro-brewery received a big boost in last week's Budget.
Chancellor Gordon Brown's announcement of a cut in the amount of tax paid on real ales plus a freeze on beer duty was welcomed by Princetown Breweries who produce Jail Ale and Dartmoor IPA.
The move to halve duty on micro-breweries producing real ale will allow the breweries to be more competitive in their attempts to break the market dominance of larger brewers.
Managing director Simon Loveless said the duty cut was extremely welcome.
'It's something that has been campaigned for by the Society of Independent Brewers for many years,' he said.
Mr Loveless said the duty cut would help the survival of small breweries, especially in rural areas. 'It will allow breweries like us to invest more of our profits locally and look at expanding our production,' he said.
Mr Loveless said the changes brought the British system closer into line with the European model, where a progressive system with smaller firms paying less duty had operated for several years.
The Chancellor described the reduction as 'equal to 14p off each pint', and said it will be implemented this summer, in time for the World Cup. Mr Loveless said he didn't expect World Cup drinkers to significantly boost his trade, but July and August were normally busy months anyway.
The small Princetown brewery was set up in November 1994, and has a staff of just three, with the firm most stretched by the soar in demand caused by the influx of summer visitors.
Around 450 of the UK's smallest breweries will qualify for the cut in duty.
Princetown Breweries received more good news last week as they celebrated success at the Tucker's Maltings real ale festival in Newton Abbot. Jail Ale again won the best premium bitter award and was chosen as reserve champion from around 150 different ales entered in the South West's biggest real ale festival.