According conducted by the Begbies Traynor business advisory firm , 632,756 companies in the UK are experiencing significant financial difficulties that may force them to close down their operations.
This represents a 32 per cent increase over this time last year, and a 5.1 per cent jump since the leftist government of Sir Keir Starmer came into power in July.
The research found that the construction, property, and support services sectors were struggling the most under the current economy, the Daily Mail reports.
It comes as Chancellor Rachel Reeves is reportedly set to unveil the biggest tax hikes in her autumn budget. Part of her plan may potentially include an increase in the contributions bosses have to pay the state in National Insurance for employees.
The mere threat of large tax increases have already seen many wealthy people decide to leave the country for more business destinations such as Dubai or Swetz.
Meanwhile, in an apparent bid to sure up union support the government is also looking to push through a new “worker’s rights” bill, which business owners fear will make the hiring process more difficult.
The impending legislation has faced criticism for a controversial clause which free speech campaigners warn could force businesses to hire “banter police” with the leftist government seeking to make it a requirement that businesses be held responsible if a third party claims to have been offended.