Insolvency Practitioner Antony Batty & Company says the November 2025 budget will do little to protect businesses fighting the threat of closure.
Antony Batty, Partner, said:
“The National Insurance contribution (NIC) rate rise in April 2025 coupled with the increase in the National Living Wage has had a huge and ongoing impact on staff costs, cash flow and margins for many small and medium-sized enterprises (SMEs) and in September we saw 2000 corporate insolvencies in England and Wales, the highest monthly figure in over 30 years.”
“Today’s budget did little to ease that pressure.”
“No VAT cuts, no cuts in high energy costs, and further individual tax rises.”
“On the eve of the budget The Chancellor also revealed that from April 2026 the minimum wage for over-21s will rise from £12.21 to £12.71 an hour, from £10.00 to £10.85 for 18 to 20-year-olds and from £7.55 to £8 an hour for 16 and 17-year-olds (and apprentices).”
Good news for employees. Less so for businesses
“While this is good news for employees, this will be a further burden on hard-pressed firms who may have to freeze hiring or even let go of staff to meet the costs.”
“Small consolations come with the news that training for apprentices under 25 will now be funded for SMEs and fuel duty will be frozen until September 2026. However, there will be a staged increase of this from 2026, and many businesses which have followed advice to invest in electrical vehicles will also now be subject to a new mileage tax.”
“Every week we are seeing more business owners who are literally working their socks off to survive – and they simply can’t do anymore.”
Retail and hospitality has been particularly hard hit
“One of the sectors hardest hit in this area is retail and hospitality, including our once thriving pub sector.”
Pub insolvencies saw a marked increase during Q2 and Q3 of 2025, reversing a tentative recovery seen earlier this year. Another 219 pubs reportedly entered insolvency in Q2, followed by 189 in Q3. In June, 84 pubs became insolvent, the highest monthly total in over a decade.
The government today announced plans to introduce “permanently lower tax rates” for more than 750,000 retail, hospitality and leisure properties, which it will fund through higher rates on properties worth £500,000 or more, such as warehouses used by online retail giants. Although no timeframe has been set.
Antony continues:
“We work to help businesses implement measures to turn things around before insolvency becomes the only option. But we have seen a notable increase in the number of pubs and hospitality businesses being closed across our area due to rising staff and running costs, and without increased stability and support we will only see more businesses fail in 2026.”
Talk to our Insolvency Practitioners for early help and advice
Directors concerned about any aspect of their financial viability, are advised to implement swift strategies to prepare for increased costs and to identify potential savings and efficiencies to cover these costs and ensure liquidity.
“In the wake of today’s budget there will be many businesses worried about their future. Seeking early advice from our Licensed Insolvency Practitioners on these matters before it is too late is not just prudent, it is essential.”
