The latest figures from the Insolvency Service reveal that over 1,900 businesses entered insolvency in January, marking a 10.7% increase from the previous year. This trend indicates a significant rise in voluntary liquidations, as business owners opt to close solvent firms in anticipation of increased costs from higher National Insurance and the National Living Wage. Additional pressures include rising energy bills and stricter creditor policies post-pandemic, with experts warning that persistent financial burdens may lead many to wind down operations in the near future.
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.
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.
Collection
[
|
...
]