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
Period: 31.08.2026 Expectation: 3600 pips
Sell EURUSD on Fed tightening expectations
Today at 11:58 AM 13
Period: 31.08.2026 Expectation: 850 pips
Buying AUDCAD on high yield gap in Aussie’s favor
Today at 11:58 AM 10
Period: 11.08.2026 Expectation: 2500 pips
Bitcoin sell-off targets $61,000
Today at 11:48 AM 12
Period: 04.08.2026 Expectation: 2500 pips
Go long on Tesla shares with $335 target as selling pressure fades after sharp drop
Today at 11:26 AM 16
Brent sell
Period: 04.08.2026 Expectation: 500 pips
Selling Brent crude as US-Iran diplomacy resumes
Today at 10:39 AM 19
Period: 04.08.2026 Expectation: 950 pips
Invest in AUDUSD with 0.70500 in sight on RBA rate hike expectations
Today at 10:19 AM 10
Go to forecasts