3 April 2025 | Other

UK companies are closing more often as taxes and wage costs rise

UK companies are closing more often as taxes and wage costs rise

More than 3,700 firms in the UK filed for bankruptcy over the past month, according to The Gazette, which publishes announcements of business closures across the country. This is 32% higher than the figures for the same period last year.

As Bloomberg notes, this month, there is expected an increase in both employer national insurance contributions and the minimum wage in the United Kingdom, according to plans announced in October by the finance minister. Such measures may harm businesses with low profitability, retail in particular.

According to Simon Edel of EY-Parthenon UK, the country's companies are being pressured by persistent inflation, falling business sentiment, and supply chain disruptions. Rising costs and the possible negative effect of new US tariffs are creating additional challenges for UK businesses. Heather Powell, an expert at Blick Rothenberg, estimates that the increase in costs for businesses due to higher taxes and insurance contributions could amount to 10–15%.

Elena Berseneva MarketCheese
Brent sell
Period: 30.09.2026 Expectation: 250 pips
Brent crude sell-off targets $88.50
Yesterday at 10:01 AM 30
Period: 30.09.2026 Expectation: 550 pips
Go short on SPX down to $7,600
Yesterday at 10:01 AM 24
Period: 21.09.2026 Expectation: 2100 pips
Go short on USDCAD as dollar index hits three-month lows
21 August 2026 44
Period: 28.08.2026 Expectation: 1002 pips
GBPUSD is likely to climb further next week
21 August 2026 54
Period: 21.09.2026 Expectation: 950 pips
Buying AUDCAD up to 0.99250
21 August 2026 42
Period: 28.08.2026 Expectation: 540 pips
Brent crude is coming close to July highs
21 August 2026 44
Go to forecasts