Labour tax reforms threaten future of Britains historic family owned breweries

Traditional family-run breweries in the UK are fighting for survival amid sweeping changes to tax policy proposed by the new Labour government. The Robinson family, whose Cheshire-based business has brewed cask ales for nearly 200 years, is warning that an overhaul of inheritance tax rules could drive a swathe of Britain’s few remaining independent breweries out of business.

Under Chancellor Rachel Reeves’ tax plans, business property relief (BPR) – historically allowing business assets to be passed down the generations without incurring inheritance tax – will be sharply curtailed, with a new cap of £1 million. William Robinson, one of the sixth generation at the helm of the brewery, described the move as a direct threat to family businesses rooted in local heritage and community life. He fears this approach could lead many to sell up or dilute ownership, recalling the decline seen in the latter half of the twentieth century when large multinational corporations rapidly took over the sector, eroding the unique culture of local brewing.

Robinsons is more than a brewery; the company operates around 250 pubs, posted record sales of £98 million in 2024, and is warning of the damaging long-term effects these reforms could have. The business is not alone in its concern. Other long-established breweries such as JW Lees, led by William Lees-Jones, say the changes would hit domestic firms hardest, leaving them at a disadvantage compared to publicly listed groups or overseas owners who remain outside the scope of the new rules. Lees-Jones drew parallels to Germany’s Mittelstand, noting similar reforms would not be tolerated in countries culturally committed to family enterprise.

The brewing industry’s woes do not end with inheritance tax reforms. With the recent rise in employer National Insurance contributions and the statutory minimum wage, Robinsons has been forced to implement a recruitment freeze, as soaring labour costs have left little room for new hires. The company calculates a £2 million increase in labour expenses as a direct consequence. Price rises in their pubs have followed but have come at a time when many households are already struggling, turning the British pub visit – once a regular ritual – into a rare treat for many families.

Job-cutting is a trend industry-wide. Nearly 90,000 hospitality jobs have disappeared since Labour’s budget announcement, with fears of further losses if another round of tax hikes weakens consumer confidence even more. Analysts report around eight pubs are shutting their doors every week, with more than 2,000 closures since 2019. Industry leaders argue the pub is more than a place to drink – it serves as a vital social lifeline, especially important during an era of increasing loneliness and social isolation.

The government maintains that these inheritance tax changes will primarily impact only the wealthiest estates and asserts that the additional revenue will help support essential public services. Critics remain unconvinced, pointing to a rising tide of family-owned firms and agricultural businesses mounting legal challenges and staging protests against what they perceive as an existential threat to Britain’s cultural landscape.