Higher employment costs as a result of the budget may push more British businesses into financial difficulty, according to the UK’s largest insolvency practitioner.
Begbies Traynor said increased employment costs, as well as higher interest rates, would extend a period of “elevated insolvency levels”, in a statement to the stock market on Monday.
The Labour government last month raised taxes on business steeply to cover the cost of increased spending on the NHS, schools and the armed forces in its first budget for 14 years.
Rachel Reeves’s decision to raise employers’ national insurance contributions provoked a chorus of protests from businesses. Unlike corporation tax, a rise in national insurance contributions affects every…
