UK firms in ‘critical financial stress’ jump by a third as costs rise, report finds

Insolvency firm points to tax rises, staff costs and shaky consumer confidence after number increases to 62,193

The number of UK businesses in “critical financial distress” has risen by more than a third over the past year, according to insolvency practitioners, as companies contend with a “slew of increased taxes” and the impact of the Middle East conflict.

Hospitality and leisure firms have been faring particularly badly because of shaky consumer confidence, and rising taxes and staff costs, according to research by the restructuring company Begbies Traynor.