UK Business Closures Spike Before Rises in Tax and Minimum Wage

Thousands of UK businesses filed for insolvency ahead of tax and wage increases on employers, a blow to Chancellor Rachel Reeves’ efforts to balance the struggling economy’s books.

More than 3,700 firms filed for insolvency in the past month, according to notices filed to The Gazette, where the country’s business closures are advertised. That’s a 32% increase on the same period last year.

Reeves is increasing both employer national insurance contributions and the minimum wage this month, potentially hurting businesses with thin margins such as retail, in an effort to bring stability to the public finances. The Labour party ...