RE: Deja vu20 Jan 2025 07:01
Higher taxes prompt surge in company failures
The number of companies going into administration jumped as businesses battled an economic slowdown in the wake of Labour’s first Budget.
There were 1,330 administrations last year, according to consultant Kroll – up 6pc on 2023.
The total is significantly higher than it was in the years following the pandemic, when there were 995 in 2022, 659 in the prior year and 1,068 in 2020.
Manufacturing suffered the most administrations, which rose by a fifth year-on-year to 179.
This was followed by the construction sector, where collapses were largely static at 157. Both were impacted last year by higher energy costs, access to finance, supply chain disruption and skills and immigration challenges.