UK businesses face tough times as government policies hit profits
Major companies are scaling-down operations across Britain due to new government rules and rising costs. From car-makers to airlines business leaders warn about survival chances in current economic climate
The UK business landscape is getting more difficult as several big-name companies announce cut-backs. Stellantis is shutting its Luton plant while EasyJet reduces its domestic routes (due to the new £32 air-passenger duty on return flights)
Some of our companies might not survive
The governments push for green-focused policies - including the 2030 petrol-vehicle phase-out - has created extra pressure on manufacturers; meanwhile higher business costs are affecting many sectors
- Rising employment costs
- New worker-rights regulations
- Increased National Insurance charges
- Higher air travel taxes
UK companies profit margins sit at just 9.3% for non-financial firms which is way lower than USʼs 16% rate. The recent tax changes by Chancellor Rachel Reeves (including a £25-billion National Insurance increase) are making things worse
Insolvency experts are seeing more work: RSM notes a 5% rise in hospitality-sector closures. The high-street is feeling pressure from staff-cost increases while tourism-related businesses struggle with reduced travel demand
The knock-on effects are clear - when businesses close it creates a chain-reaction: job losses lead to less spending which affects other companies Its a self-feeding cycle thats just beginning to show its effects
