The head of Begbies Traynor, one of the UK’s largest insolvency firms, has warned that Labour’s tax policies could trigger a further wave of company failures as economic pressures mount.

Ric Traynor, executive chairman of the Manchester-based group, said businesses – particularly in hospitality – were “still struggling” amid rising costs and an “ever-growing tax burden”. His warning follows a sharp rise in insolvencies since Chancellor Rachel Reeves’ tax increases came into force in April.

“We’ve seen those smaller businesses that don’t have the resources just go under,” Traynor said. “There’s no reason for us to believe this will change.”

One signal of the changing fortunes can be seen in the insolvency practitioner’s business itself. Begbies Traynor recently reported a profit of £11.5m for the year to April, nearly double the £5.8m earned in 2024. The company also saw revenue grow by 12 percent to £154m, driven by heightened demand for insolvency services.

Traynor said the number of company failures “jumped up” in May and warned that conditions remain difficult. Many pubs, in particular, are being pushed to the brink by a Labour government that has so far failed on its promise to help small businesses. The next budget must deliver significant support for the sector before even more of Britain’s rich pub culture is lost forever.