Stats released by The Insolvency Service unveiled a 2% increase in company insolvencies in October compared to the month before, and sit 17% higher than in October 2024 with Construction, Wholesale and Retail Trade, Accommodation and Food Service topping the table of struggling industries – responsible for 47% of all company insolvencies.
Giuseppe Parla, Restructuring & Insolvency Director at Menzies, warns that the Red Box will signal the direction of travel for British Businesses as insolvencies continue to rise:
“Insolvency statistics have risen again as businesses continue to hold their breath ahead of a delayed Autumn Budget. The reality is that British businesses remain under pressure, impacted by rumours of tax hikes, price rises and their ability to break even in an unpredictable economic climate.
As we sit a week from the Budget, all eyes are on the Chancellor to set out how this Government plans to restore confidence and financial stability. Businesses are looking for clarity on growth, tax pressures, cyber risks and shifting international trading rules.
The Red Box will signal the direction of travel, but with VAT, Income Tax and NIC all under scrutiny, bumps in the road are inevitable. Unemployment is at its highest point in four years, wage growth is slowing, and many expected cuts to the Bank base rate that didn’t come. Yes, the UK avoided recession, but with only marginal GDP growth, the pressure is firmly on for a Budget that supports the economy without placing further strain on working people.
Seeking help is a difficult conversation to have. But, as ever, our message to businesses is clear: please act early if you anticipate financial trouble. Doing so ensures that more options are available for you to address business issues, to secure a profitable future and remain trading.”
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