More than 50,000 British firms are now in ‘critical financial distress’ with ‘no relief in sight’ as the Chancellor plots a fresh avalanche of tax hikes in the Budget.
In a gloomy report that underlined the pressure on UK business, insolvency experts Begbies Traynor Group (BTG) said the number of companies on the brink has risen 9 per cent in the past year to 53,756.
Consumer-facing businesses were the worst hit with levels of ‘critical distress’ among leisure firms and hotels up more than 25 per cent. Pubs, bars and restaurants suffered a near-11 per cent rise.
Ric Traynor, executive chairman of BTG, said he expects the ‘shockwaves’ to spread to other industries this year and into 2027 as energy prices rise and confidence drains away.
And BTG managing partner Julie Palmer sounded the alarm over a damaging period of uncertainty ahead of the Budget amid speculation Andy Burnham and his Chancellor John Healey are preparing yet more tax hikes.
