Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Insolvencies soar to 16-year high as tax hike drives bosses to close up shop

by February 18, 2025
February 18, 2025
Insolvencies soar to 16-year high as tax hike drives bosses to close up shop

The number of company insolvencies rose sharply at the start of the year, reaching a level not seen since the financial crisis, according to the latest figures from the Insolvency Service.

More than 1,900 businesses went under in January—10.7 per cent more than a year earlier—meaning nearly 500 firms a week were forced to fold.

Aside from 2009, when the economy reeled from the global credit crunch, last month’s total was the highest recorded for any January since official data collection began in 2000.

Tim Cooper, president of insolvency and restructuring trade body R3, highlighted that many of these cases were voluntary liquidations, suggesting owners were choosing to wind up solvent businesses. “Years of challenging trading conditions are taking a toll,” he said, “and with an increase in the national minimum wage and employers’ National Insurance contributions on the horizon, it appears some directors are stepping away before costs become unmanageable.”

From April, firms must grapple with Chancellor Rachel Reeves’s Budget measures, which include a £25 billion tax raid on employers through higher National Insurance. That same month, they also face a 6.7 per cent rise in the National Living Wage—exceeding most private-sector expectations.

Some analysts say the spectre of additional legislation—such as Deputy Prime Minister Angela Rayner’s Employment Rights Bill, set to cost businesses an estimated £4.5 billion annually—may be accelerating decisions to close up shop. Many of these burdens come on top of persistently high energy bills, fallout from Russia’s invasion of Ukraine and interest rates which, although trimmed recently, remain far higher than their pre-pandemic levels.

“Companies have faced climbing expenses for a prolonged period,” Mr Cooper added, “and consumer confidence has been dented. Meanwhile, creditors have become less tolerant in chasing outstanding debts, including HMRC, which has reverted to a more stringent stance.”

The figures show a fresh blow for businesses that had already endured a subdued Christmas trading season. Retailers and hospitality venues have struggled with low consumer spending, while VAT and PAYE arrears are being pursued more aggressively. Lawyer Gavin Kramer from Collyer Bristow also warned: “Firms continue to struggle, and there are few clear signs of economic growth.”

Before January’s jump, overall insolvencies had been in decline since last June—but these numbers confirm that thousands of directors have now decided the best option is to close before spring’s raft of cost increases bite.

A Treasury spokesman declined to comment on the data.

Read more:
Insolvencies soar to 16-year high as tax hike drives bosses to close up shop

0
FacebookTwitterGoogle +Pinterest
previous post
Russia, Ukraine take ‘significant first step toward peace’ after Rubio-led negotiations, White House insists
next post
Elon Musk: Federal Agencies Are Like Weeds

You may also like

Sainsbury’s sees food sales rise, but Argos drags...

November 8, 2024

Best Practices for Packaging and Transporting Perishable Foods

September 11, 2024

NatWest ‘Tell Sid’ Sale Likely to be Postponed...

May 23, 2024

Price Transparency: The Key to Consumer Trust and...

December 5, 2024

Vasectomy: a personal decision, but many pros and...

September 11, 2024

Aston Martin launches £575m rights issue powered by...

September 5, 2022

Technology leaders press the PM on semiconductor policy

January 25, 2023

Shortlist Unveiled for NED Awards 2024

February 11, 2024

Small businesses being offered support to go green

October 10, 2023

Charles Norfleet Shares Advice On Navigating the Future...

December 24, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved