Recently published figures by WSP Solicitors indicate a significant rise in company closures across the UK, showing a 23% increase since October's Budget. Specifically, in Gloucestershire, there was a 20% decline in new start-ups, with incorporations falling sharply. The report highlights the impact of increased Employer NIC and minimum wage that have surged labor costs. Local businesses are struggling with an anti-entrepreneur climate, leading to closures and fewer new businesses. The trends are concerning, especially with upcoming tax hikes and economic pressures.
The Government's Autumn Budget sent shockwaves across organisations in Gloucestershire, with increases to both Employer National Insurance Contributions (NIC) and the minimum wage hiking up labour costs.
Business Asset Disposal Relief has also risen since, from 10% to 14%, and will only go up again to 18% in April next year. The combination of these tax rises has seen businesses close or be sold.
There is a sense that the Government's persistent tax hikes on businesses are creating an anti-entrepreneur environment, especially when we read reports that a record number of millionaires left the UK last year.
Our data echoes this sentiment with signs of fewer people forming new companies in the county, alongside the number of organisations closing their doors.
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