Financial Pressures Aren’t Easing

The well-documented economic challenges facing the new Government aren’t getting any easier as more and more businesses struggle to cope with the ongoing demands of high interest rates and the cost-of-living crisis.

Sadly, recent figures indicate an increase in the number of business liquidations, which have risen by 35% during the year. The construction sector has been badly affected but the inability to manage sufficient cashflow to remain operational has affected businesses across all sectors with over 600 having to cease operations.

There has also been a significant change in the labour market with an increase in unemployment which has risen from 3.6% to 3.9% in the September 2023 quarter. This is in stark contrast to the extremely competitive labour market conditions of the past two years which saw many businesses struggling to fill vacancies.

Both of these factors serve to illustrate how difficult it is to run a business in these very challenging economic times. I sincerely hope that there are better times ahead for the many business owners who are struggling to keep their doors open.

The pressure is on the new Government to deliver on their pre-election promises which offered some respite from the ongoing financial pressures by reducing inflation and interest rates whilst also increasing peoples’ weekly income. Unfortunately, there is no quick fix but hopefully the people that need it the most will soon get some financial relief to make their lives a little easier.

To help, please keep shopping local!

Source: Networker Magazine

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Ben Yang

Ben Yang