Number of insolvencies in pub industry falls

New figures have revealed that the number of insolvencies in the pub industry fell in the second quarter of 2010.

The research, released by insolvency firm Baker Tilly Restructuring and Recovery, show that just 115 pubs were declared insolvent during the second three months of the year, compared to 124 in the first quarter.

As fewer pubs are collapsing, production rates look more likely to remain consistent – news that will be welcomed by the brewing industry as a whole.

But there could be some less good news for the pub industry – the VAT hike.
Mark Wilson, partner at Baker Tilly, warned brewing officials that next year’s VAT hike could hit market sales.

"The industry should remain cautious, particularly as the sector has been put on notice for the impending VAT hike. While they have been given time to prepare, there is likely to be some impact once this bites in the new year," he added.

The research also found that overall beer sales were up 2.9 per cent compared to last year, with supermarket sales increasing by 14 per cent.