“Company insolvencies have reached a 16-year high, with nearly 500 businesses collapsing each week. January saw 1,971 insolvencies, marking a 10.7% increase year-on-year and the highest level since the 2009 financial crisis. Many directors are opting for voluntary liquidations, anticipating financial strain from upcoming cost pressures. Experts cite the increase in the national minimum wage and National Insurance contributions as key factors influencing business closures.
The retail, wholesale, and hospitality sectors are particularly affected, losing over 94,000 jobs within a year. Businesses face further strain in April when Chancellor Rachel Reeves’s £25bn National Insurance tax increase takes effect, alongside a 6.7% rise in the National Living Wage. The data suggests that many firms are preemptively shutting down before these financial burdens become insurmountable. The Treasury has not yet commented on these alarming trends.”
Quotation by Nigel Holland.
- Company insolvencies hit a 16-year high, with nearly 500 businesses collapsing weekly.
- Voluntary liquidations are rising as directors prepare for increased costs.
- Retail, wholesale, and hospitality sectors have lost over 94,000 jobs in a year.
- National Insurance and National Living Wage increases in April will add further pressure.
- The Treasury has yet to respond to concerns over business failures.