Double whammy as firms face costs hike and Iran war woes
Labour’s tax and wage hikes were causing firms to feel ‘elevated’ distress even before the Iran war, figures show.
That is because profit margins for many ‘remain under intense pressure’ after increases to National Insurance and the minimum wage, an index compiled by law firm Weil revealed.
And they face further pain as the Middle East conflict extinguishes rate-cut hopes while casting a shadow over the growth outlook, it found.
Causing havoc: Labour’s tax and wage hikes were causing firms to feel ‘elevated’ distress even before the Iran war
‘Rapidly rising energy prices risk squeezing household incomes, curbing spending and investment, while heightened uncertainty may also lead businesses to delay hiring and dampen confidence,’ the report said.
‘Against this backdrop, corporate distress in the UK is expected to remain elevated.’
The UK is behind only Germany and France in Europe regarding such concerns, it added.
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