Historic jump in companies in critical financial distress
Published On Jan 23, 2025, 7:01 PM
Recent reports indicate that UK businesses are facing a record number of financial distress, with a 50% increase in companies labeled as critically distressed from September to December 2024. Key sectors affected include hospitality, retail, and leisure. Contributing factors include aggressive tax collection by HMRC, decreasing consumer confidence, rising costs associated with national insurance contributions, and higher minimum wage. Overall, these challenges could lead to significant business closures in 2025, as consumers also show a lack of confidence in the economy, opting to save rather than spend.
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