"Labour's policies around the NLW and NICs continue to prove disastrous and damaging for the nation's businesses. While not every single liquidation since November will be the result of these policies, it's clear that increasing the financial strain for businesses that are still only finding their feet after the pandemic, is going to force many to go under. Not only are these closures bad for the economy in the long run,"
"each one results in immediate job losses, sending hundreds if not thousands of people in search of work. The problem is, these people are entering a stuffy job market due to the fact that businesses aren't hiring as freely as they once were because the government's NIC and NLW policies have made it too expensive to take on staff. And so the vicious cycle continues."
Since November 2024, 16,313 company insolvencies occurred in England and Wales, including 2,661 compulsory liquidations and 12,506 voluntary liquidations, a 1.5% increase versus the equivalent prior period. Projections based on current trends forecast 24,770 company failures by the end of 2025, making it the second-worst year for business liquidations this decade. Increasing Employer National Insurance Contributions and a higher National Living Wage have raised labour costs, contributing to financial strain for businesses still recovering from the pandemic. These closures produce immediate job losses and reduce hiring, tightening the job market and creating a negative feedback loop.
Read at London Business News | Londonlovesbusiness.com
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