Huge bankruptcies in the UK. The reason behind the high energy costs

Bank of England He warned of such a scenario in the middle of this year. Institutional analysis also showed that the UK could face a recession next year. According to the bankers, The British are also set to face one of the biggest real hits to income since 1964. Unemployment, in turn, will reach 5.5 percent. before 2025.

negative scenario It also began to fulfill in the case of companies. According to data published by the UK Insolvency Service and the Office for National Statistics, More than one in ten companies surveyed in August reported bankruptcy risk. For nearly 22 percent for companies, a 15 percent increase in energy prices is already a problem. Due to successive increases, this percentage has recently increased.

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Companies from four industries, construction, production, gastronomy, and the hotel industry face the most problems, followed by wholesale and retail trade. Companies in these sectors are currently responsible for more than half of all business failures in the UK. The main reason for their worsening situation is that they cannot deal with the high electricity and energy bills.

The increase in the costs of gas and raw materials is, in turn, a consequence of the war in Ukraine, the worsening energy crisis and, above all, high inflation. Thus, companies are forced to raise prices in order to maintain their margins, and unfortunately customers cannot accept higher prices, which really affects the state of the institutions.

Accelerating inflation, which is reflected in prices, is making UK consumers more and more They are now often turning towards cheap stores and private brands in their daily shopping.