Fifty thousand businesses on brink of collapse over ‘immense strain' of rising wage costs

Scottish Sun

4 days ago

Those in 'significant' financial distress increased by ten per cent over the year
'CRITICAL' LEVELS Fifty thousand businesses on brink of collapse over 'immense strain' of rising wage costs
FIFTY thousand businesses are on the brink of collapse as rising wage costs put them under 'immense strain', a report reveals.
The number in critical financial distress has risen by more than a fifth compared with a year ago.
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The British Beer and Pub Association warned 378 pubs would close this year in England, Wales and Scotland
Credit: Getty
Chancellor Rachel Reeves' increases in National Insurance costs and the minimum wage are seen as key reasons, the Begbies Traynor survey shows.
Bars and restaurants at 'critical' financial level were up by 41 per cent.
And there was a 39 per cent rise among travel and tourism companies.
The total number hit 49,309.
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Those in 'significant' financial distress increased by ten per cent over the year to 666,876.
Shadow Chancellor Mel Stride said: 'Labour's reckless Jobs Tax is pushing thousands of small businesses to the brink.
"The lifeblood of local communities are paying the price.'
Ric Traynor, of Begbies Traynor, said: 'Small and medium-sized businesses across the UK are being put under immense strain by the recent increases to employer's NI and the national minimum wage.'
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The British Beer and Pub Association warned 378 pubs would close this year in England, Wales and Scotland.
The BBPA's Emma McClarkin said: 'We're calling on government to fulfil promises of business rates reform, mitigate costs and cut beer duty.'
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The number of businesses in critical financial distress has surged by over 20% — with Rachel Reeves' hikes in National Insurance and minimum wage blamed
Credit: PA