UK businesses fear bankruptcy due to rising costs

Many UK businesses are expressing serious concerns about their future as rising costs threaten their survival. A new report indicates that nearly half of these companies worry they may not last the next five years. They blame the recent tax increases introduced by Chancellor Rachel Reeves for their struggles. The survey, conducted by MyWorkwear, found that 72% of business leaders are anxious about the upcoming hikes in National Insurance contributions and the minimum wage. Most plan to pass these costs onto their customers. Results show that 44% of companies fear they may not survive due to the growing financial strain. In response to these challenges, many businesses are shifting their focus. More than 60% say they will invest in technology and automation instead of hiring new employees. Additionally, 57% have delayed hiring, and 28% are considering layoffs. Co-Managing Director of MyWorkwear, James Worthington, commented on the concerning economic sentiment among businesses. The UK economy has faced setbacks, including a decline of 0.1% in January. Economic growth remains a key priority for the government, but forecasts from the Bank of England have become less optimistic. Households are also bracing for financial strain as utility bills, council tax, and other costs are set to rise in April. A survey by Ocean Finance reveals that many people are worried about affording essentials and have already cut back on heating and food. Consumer expert Fiona Peake highlights the added financial pressure coming this month and warns it could significantly impact families.