Survey reveals almost half of businesses are worried they won’t survive the next 5 years due to increasing costs

A new study of 114 business leaders reveals the bleak outlook facing companies across the UK in the wake of Rachel Reeves’ proposed tax changes.

The report, conducted by personalised workwear, uniform and PPE supplier MyWorkwear, has revealed that 72% of businesses surveyed are actively concerned about the upcoming increase to employer’s national insurance contribution and increase in minimum wage, with 68% explaining that they expect to pass these increased cost rises onto their customers.

Tellingly, the results revealed that nearly half of businesses (44%) answered ‘yes’ when asked whether they had concerns that their business would struggle to survive the next five years because of escalating costs.

Over 60% of respondents explained that they were investing in automation and technology instead of people. This was echoed by 57% saying they had shelved plans for recruitment and 28% having made plans for redundancies.

As a branded workwear provider who fosters relationships with businesses across multiple industries, Telford-based MyWorkwear itself is facing increased costs of around £100,000.

“We tend to be a pretty good barometer for economic sentiment and the findings of our report strongly echo the feedback we’re hearing from customers in that businesses are struggling and concern is growing about the future of the UK economy,” commented Co-Managing Director James Worthington.

He continued, “As well as increasing costs from employer national insurance contributions and increased minimum wage, the report noted that inflation rates are playing a huge concern in business owners’ worries as well as a lack of skilled labour.

“The inflation rates we are experiencing ourselves are causing us to look at new commercial activities and new pricing structures to try and find ways to absorb the price hikes that are in addition to our usual standard annual price increase”.

The survey found that while almost half of respondents (46.5%) stated that their workwear is not impacted by cost-cutting measures, 13.2% did say that they were removing all non-PPE workwear for their staff.

Pic: James Worthington of My Workwear