Overview
- Resolution Foundation forecasts a wave of low‑productivity company closures driven by higher borrowing costs, elevated energy prices and statutory wage increases.
- Unemployment stood at 5.1% in October 2025, and two‑thirds of economists polled by The Times expect it to finish 2026 between 5% and 5.5%.
- Insolvencies rose 17% to 2,029 in the year to October and the share of jobs lost to closures hit its highest since 2011, signaling mounting distress.
- Business confidence fell to a three‑year low in a BCC survey of 4,600 firms, with tax the top concern and investment plans weakening.
- New warnings highlight “cashflow contagion,” as late payments from struggling customers threaten otherwise viable firms and could amplify job losses.