Credit, Collections & Insolvency News
Latest data has shown that in Quarter 1, business closures in the UK surged to their highest level since 2021, this was before the impact of US trade tariffs and the latest date for the government’s increase in National Insurance contributions. According to insolvency notices in the Gazette, 2,718 companies shut down between January and March.
The toxic combination is set to make the business environment even more challenging for many UK businesses, according to Bluestone Credit Management.
Simon Frost, Head of Business Development at specialist credit management business Bluestone Credit Management, said “Rising interest rates and inflation were a body blow to many businesses, which had only ever known consistently low levels of both. Now, they are facing tax rises and the entirely unknown impact of tariffs. The UK may have only been dealt a 10% tariff levy for goods imported from the UK, but the global nature of business and, most especially, the supply chain implications will undoubtedly add cost to the known NI increases that started this month. It will be tough for many, not least of all, in cashflow terms.”
“The ripple impact of tax rises and tariffs will be toxic for some businesses. Passing on the rises may be tough, as will the idea of cutting costs, and at the same time, there will be increasing concern about the ripple impact on cash flow, especially as more businesses are at risk of failure. Managing that cash flow and staying on top of the debtor ledger is one area businesses can work to control, and that must start now.”