More than 600,OOO UK companies in financial distress. Labour's answer? More financial burden.

 

In recent years, the level of taxation imposed by Labour authorities increased exponentially. 

Congestion charge? ULEZ? Parking permits? Announced increased of capital gains and national insurance payments? 

Not enough with having to contend with rising costs of utilities - to name one range of expenses for any business to deal with - more regulation on the horizon.

After COVID,  the energy crisis, and after the energy crisis a Labour government that is bent on creating new obstacles along the way.

When we talk about more than 600,000 businesses in trouble, we are surely talking not mainly about big operators, but about medium size and small businesses, many of which might certainly be family businesses.

The amount of money people spend shopping has dropped and this means less revenues for companies, whatever their size. If you add regulation and taxation, there is going to be less monies to invest in the normal economic cycle. If by cutting down the flow of money in the normal economic cycle, unemployment and subemployment rise then the Welfare State will be affected. The annnounced intention to cut down welfare payments by 3 billion Pound is pie in the sky. It is for the birds. Lack of economic activity due to people having less money in their pockets will lead to unemployment. The natural consequence is that several things will grow: domestic violence, street crime, deprivation, and illness.

Taxing people and companies to the hilt will not produce economic growth.