There are growing fears that 2023 could see a wave of company collapses as the cost-of-living crisis continues.

New data published by accountants Begbies Traynor, indicates thousands of businesses including breweries and community pubs are still battling the legacy impact of Covid debt and are deeply troubled by inflation.

The insolvency specialist says nationally more than 57,000 businesses, across all sectors, are now on the brink and operating under significant financial distress – a 20 per cent rise from the same pre-pandemic period in 2019 (47,653).

The Red Flag Alert data, published by the company has analysed the health of companies across the country for more than 15 years.

Nationally, more than 600,000 firms are now in significant financial distress. Begbies Traynor partner Gary Lee said: “The difference between pre-pandemic business conditions and now is stark. These figures highlight the gloom in the economic climate since the pandemic.

“Company directors must stay alert and act quickly and decisively as we progress into 2023 which is already bringing its own challenges.

“It’s clear that business owners are working hard to tackle rising inflation, soaring energy bills and doing their best to ward off the impact of what looks like a looming global recession but in too many cases it won’t be enough.”

In an interview with the BBC, Paul Jones, co-founder of brewery Cloudwater, said the pressure was immense.

Jones said his Manchester-based company has been in survival mode since March 2020, with high costs, debt, low consumer confidence and post-Brexit trading problems all bearing down on the business.

“The cost to me has been pretty bleak,” he said. “I have a heart condition from stress and I feel constantly on the edge of what I can personally cope with.”

His thoughts have turned to closing his business “probably once a month since 2020”, he said.

“I feel like continuing is either not possible or not worth it,” he said. “We’re going to keep going. What else can we do?”

The vast majority (80 per cent) of the beer traditionally produced by small breweries is sold in local pubs within 40 miles of the brewery, says SIBA the trade association for smaller brewers.

SIBA said: “The hospitality sector is under intense pressure from the lingering impacts of the Covid-19 pandemic and the combined energy and cost of living crisis.

“Nearly 400 pubs closed for good in 2022 in England and Wales and the number of them in the UK has fallen 25 per cent since 2000. The UK also lost 160 active breweries during the pandemic and in 2022 80 small independent breweries closed for good.”

CAMRA is calling for the government to give support to pubs and breweries in the March Budget.

National chairman Nik Antona said: “It is vital the chancellor uses his Budget in March to announce a wider support package if pubs are to survive and thrive.

“This must include proper reforms to fix the unfair burden of business rates and introducing the new lower rate of duty charged on draught beer and cider at 20 per cent below the general duty rate.

“This would help keep pub-going affordable for customers and give our locals a fighting chance against the likes of cheaper supermarket alcohol,” said Nik.