Tax increase is more fierce than a tiger! The number of bankruptcies among businesses has surged after the announcement of the UK's autumn budget.

Following the UK Labour government's proposal to reduce tax breaks and increase taxes on business owners in the autumn budget, the number of UK businesses applying for bankruptcy has surged. Data shows that in the week ending on November 8th, at least 1022 UK businesses applied for bankruptcy, a 64% increase compared to the same period last year. This poses a potential challenge for UK Chancellor Rachel Reeves, who will deliver a speech to the business community this week emphasizing the importance of economic growth through free trade, in an attempt to turn the page on the budget proposal to raise taxes. Reeves will also present a plan to collaborate with the financial sector and reform pension funds in order to stimulate economic growth. Prior to the budget announcement on October 30th, some solvent company owners had already started liquidating their assets, as it was widely expected that Reeves would increase wealth taxes. In this context, Reeves cut a tax break called the Entrepreneur's Relief, which reduces capital gains tax. Business owners eligible for this relief will now see the tax rate increase from 10% to 14%, and further rise to 18% by 2026. Reeves also announced an increase in the main rate of capital gains tax in the autumn budget. Hotel industry owners have warned that following the increase in the main wage tax - employer's National Insurance contributions - and the minimum wage, they may have to lay off workers. Bloomberg Economics suggests that data released this week may show that the UK economy is losing momentum after a slowdown in the third quarter, despite a healthy growth in real wages, consumers seem unwilling to spend. According to information, on October 30th local time, Reeves presented the autumn budget. This is the first fiscal budget since the Labour government took office in July, bringing more certainty to UK economic policy, but also raising concerns due to its implications for tax increases and government debt. The budget reveals a significant increase in public service spending, with healthcare, education, and infrastructure development becoming areas of focus. Along with increasing public spending, the UK government plans to increase revenue by approximately 400 billion over the next five years. The tax increase plan mainly targets high income and wealthy individuals, including employer National Insurance contributions and inheritance tax, and indicates reforms to the tax structure for "non-domiciliary residents". Data from the UK think tank Institute for Government shows that this budget's tax increase is the highest in 50 years. Additionally, the UK Office for Budget Responsibility predicts a 196 billion increase in public debt by the government this year, and an average annual increase of 323 billion in public debt over the next five years.