Simple Liquidation blog

Inflation is one of the key economic indicators that affects the cost of living for households and operational costs for businesses. As businesses, consumers, and policymakers navigate rising prices, it’s essential to understand how quickly the UK inflation rate is rising and the potential consequences. In this blog, we explore the factors influencing the rise in inflation, its current trajectory, and how individuals and businesses can respond. The UK inflation rate is the percentage increase in the average price level of goods and services over time. It’s typically measured by the Consumer Price Index (CPI), which tracks the change in prices of everyday goods and services such as food, clothing, housing, and transportation. Inflation impacts purchasing power, meaning that, as prices rise, the same amount of money buys less than before. Inflation is driven by various factors, including demand pressures, supply chain disruptions and fluctuations in currency exchange rates. The Bank of E...

The global stage plays an important role in shaping the UK economy, with international policies influencing trade, investment, and markets. Former U.S. President Donald Trump’s economic strategies, marked by aggressive tariffs, tax reforms, and an ‘America First’ agenda, significantly impacted global trade and investment flows, including the UK. For the UK, navigating these changes coincided with its post-Brexit transition, creating challenges and opportunities. By examining the effects of Trump’s policies, we gain valuable insights into their impact on trade, investment, and the broader economic relationship between the UK and the U.S. Let’s take a closer look at how these strategies have shaped economic relations, and what they mean for the UK’s future. Donald Trump’s ‘America First’ agenda reshaped the U.S. approach to international trade, prioritising domestic interests and introducing tariffs, particularly on China and the EU. While the UK wasn’t always directly targeted, the ripp...

In recent years, a mix of economic pressures has driven significant changes in the UK’s insolvency field. From the lingering effects of the COVID-19 pandemic to inflation and interest rate hikes, these challenges have reshaped how businesses approach financial distress and insolvency. Insolvency practitioners have had to adapt to new challenges as solvent and insolvent liquidations take on different characteristics in this altered financial climate. The COVID-19 pandemic initiated an unprecedented economic crisis, and its effects continue to influence insolvency trends. Many businesses struggled to maintain operations as lockdowns and restrictions limited consumer demand and disrupted supply chains. In response, the government introduced support measures such as the Coronavirus Job Retention Scheme (CJRS), bounce-back loans, and business rate reliefs, which offered temporary relief to struggling businesses. However, these support mechanisms only deferred insolvency for many. As busines...

As 2024 draws to a close, the UK business landscape is undergoing significant transformations, mainly driven by the growing trend of rising corporate insolvencies. Economic challenges, shifting consumer behaviours, and mounting financial pressures have created a difficult environment where many businesses struggle to remain viable. The effects of these rising corporate insolvencies go beyond the companies themselves, having a ripple effect across the wider economy, impacting employees and creditors, and shaping the future of UK commerce. In this blog, we explore the reasons behind the increase in insolvencies, the consequences for the businesses, and the options available for struggling companies. The UK has seen a rise in corporate insolvencies, with 2024 proving particularly challenging. Factors such as the lingering effects of the COVID-19 pandemic, the cost of living crisis, inflation, and global supply chain disruptions have made it increasingly difficult for businesses – especial...

The UK economy has seen significant turbulence in recent years, and, with the ongoing challenges of inflation, rising interest rates, and global supply chain disruptions, many businesses are struggling to stay afloat. As a result, business insolvency rates have steadily risen, with some sectors facing more intense pressures than others. This blog explores the reasons behind the rise in business insolvencies, identifies the sectors most affected, and provides advice for business owners seeking solutions during these difficult times. Business insolvency occurs when a company can’t meet its debt obligations as they fall due. In 2024, UK business insolvency rates have surged as companies across various sectors face financial challenges. High operating costs, supply chain disruptions, and a tough economic climate have created significant hurdles.  Persistent inflation, rising energy costs, and increased wage demands are straining businesses, especially those with slim profit margins. Fu...