New figures saw the UK brewing industry post a 38 net closure rate across the UK since 2023, with all regions either seeing a reduction or remaining the same.

The figures released by the SIBA UK Brewery Tracker show the UK total number of active brewers now stands at 1,777. The 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 a plus 11 net growth rate, with the South East (up three) and South West (up two) seeing more moderate growth.

The overall UK year-on-year figure is also down 47, led primarily by a 19 net closure rate in the North West, 12 in the North East, and 11 in both Wales and the Midlands.

SIBA chief executive Andy Slee said: “Seeing a two per cent 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, and 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 while 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.”

“The government’s 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, has been hailed as a hugely positive step – but SIBA says it must go further to have a lasting impact.

“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, while ensuring independent breweries are able to turn a sustainable profit.

“Every brewery closure is a huge loss to its community and economy, and while 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.”