Almost 40 breweries closed across country in opening three months of year, new figures reveal

In the North East region, which covers Yorkshire, there has been a loss of five breweries to take the total amount to 251.

The SIBA UK Brewery Tracker takes into account all brewery openings and closures to give an accurate picture of the number of active brewing businesses.

A year on year comparison shows a slightly more positive picture, with some regions seeing overall growth when compared to this time in 2023.

The East has had a particularly strong 12 months with net growth of 11 Net growth rate, and increases also recorded in the South East and South West.

However in the North East region, the annual comparison shows a drop of 12 and across the country, a net loss of 47 breweries was recorded.

Andy Slee, SIBA Chief Executive, said it is a challenging time for brewers but he is hopeful of an improved picture in the coming months.

“Seeing a 2 per cnt drop in the number of breweries in the UK is a small shift, but not the start to the year the industry had hoped for,” he said.

"As we look ahead to what promises to be a busy summer for pubs I’m hopeful we’ll see the dial swing into the positive as we did in Q2 2023.

"There is no single reason breweries in the UK close, but for most it is a combination of rising costs and slowing sales caused by the cost of living crisis, which when compounded by the repayment of substantial Covid loan debts makes many businesses struggle to turn a sustainable profit.

"And whilst the price of a pint on the bar is already high, this simply isn’t passed on to small brewers – with the price of a pint largely eaten up by one of the highest levels of taxation in Europe, and huge increases in raw materials and production costs for brewers.”

Mr Slee said the Government has taken a step in the right direction with a differential rate of duty for draught beer in pubs and taprooms, meaning there’s less tax on beer sold in pubs compared to shops and supermarkets.

But he added the policy should go further.

“Extending the draught duty relief to 20 per cent would be a game-changer for the industry and go some way to keeping the price of a pint in pubs affordable, whilst ensuring independent breweries are able to turn a sustainable profit.

"Every brewery closure is a huge loss to its local community and economy, and whilst the Covid loans offered to businesses to keep them afloat were a necessary step we are seeing many businesses now struggle with the pressure of the short and inflexible payment terms offered.”

The Government set up loan schemes during Covid to help businesses survive lockdown but those who signed up on variable rates have been hit by the Bank of England base rate increasing from 0.1 per cent in November 2021 to 5.25 per cent by August 2023, where it remains today.

The Government has already paid out more than £9bn to settle lender claims after firms became unable to fulfil repayments.

Of the £77bn provided to businesses, more than £20bn has been fully repaid with a further £24.5bn worth currently on schedule to be returned.