Nearly 66,000 businesses in the North West are now facing significant financial distress according to insolvency specialists.
The most significant increases were seen in the food, bar, restaurants, and hotel sectors. Construction, property, support and professional services were also hit with problems moving ‘down the chain’ to smaller firms.
No sectors are safe with everyone feeling the pinch from inflation is driving up costs for raw materials and labour.
The 2024 Autumn Budget, scheduled for Wednesday, October 30, could significantly impact UK businesses, depending on the policy measures introduced.
One of the most critical areas will be taxation changes. Any adjustments to the corporate tax rate could directly influence business profitability and investment decisions. If corporate taxes rise, businesses will face higher operating costs, while a reduction could encourage further investment. Additionally, potential changes to employee-related taxes, such as National Insurance contributions, could increase labour costs, which would be challenging for businesses already grappling with wage inflation. Similarly, reforms to business rates could affect the cost of running physical locations, particularly for sectors like retail, hospitality, and real estate.
But there could also be opportunities tied to infrastructure and regional investment. If the government announces new infrastructure projects, the construction sector could see increased activity, along with related industries. Likewise, any regional development initiatives aimed at stimulating growth in specific areas, such as the North West, could benefit local businesses.
Business confidence will be influenced by the clarity and stability of the policies announced. Uncertainty surrounding the Budget may affect businesses’ decisions regarding investments, hiring, and expansion, as many will be waiting to see how government measures will impact their future planning. Stability in policy will be essential for long-term business strategy.
