Firms 'finding it almost impossible to survive' after Labour tax hikes

Less than three months following Labour's inaugural Budget, which saw an array of business tax increases introduced, there has been a 50 percent surge in the number of companies entering a state of critical financial distress. As per Begbies Traynor's latest "Red Flag Alert" report, firms registering 'critical' financial stress in Q4 of 2024 grew to 46,853.

The review spanned 22 sectors and revealed that the hotel sector experienced the most substantial rise in distress, with an 84 percent increase. General retail did not fare much better, with its distress figures climbing just over 47 percent, as reported by City AM.

Julie Palmer, a partner at Begbies Traynor, commented bleakly: "As we start a new calendar year, there is very little to be excited about."

The 'Red Flag