Feb 2023
The rising cost of living is never far from the headlines, but if your livelihood is at stake then you’re probably more worried than most.
Company insolvencies are currently at their highest level since 2009
They jumped up over 80% in the past quarter compared to a year earlier. Plus, the number of firms opting to be liquidated hit the highest level in at least six decades, accounting for almost nine in 10 of the total.
These figures alone show us the kinds of pressure businesses are up against on a day to day basis. Especially considering that at the same time these businesses were heading towards insolvency, they were faced with huge increases to bills - of 600% for some - and demanding action to help bring them down.
Pub chains have been some of the hardest hit
Companies owning almost half of the UK’s 47,000 pubs saying tenants were already giving notice because they could not cope with energy bills, which are due to rise more than fivefold in some cases.
Hospitality businesses also face a double-edged sword. As well as facing a huge jump in supplier and energy costs, their customers are facing the same squeeze on their household income, leaving little left for that end-of-the-week drink or pub meal out.
Wider effect
There’s also the potential knock-on effect this could have on employment. The pub industry alone employs 940,000 people currently, so if more pub chains close, those positions and any future opportunities to employ people will be at risk.
If you’re worried about how the year ahead might look for your business, contact Downs Solicitors to see how we can help set you and your business on the right path.
