Companies working within the food and drink industry accounted for 6% of UK-based administrations in 2022, according to research from law firm Shakespeare Martineau.
87 of the overall total of 1,340 businesses (a 56% increase compared to the 2021) came from the food and drink sector, making it the sixth highest sector in the UK.
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Andy Taylor, partner and head of restructuring at Shakespeare Martineau, said: “The latest statistics show that the true costs of living and doing business are beginning to bite. Numerous headwinds – such as the cost of borrowing, and increasing energy, fuel and raw material costs – have become a new normal at this point and businesses are being pulled from every direction. Furthermore, while supportive in the main, pressure from lenders is increasing and HMRC is taking a firmer stance, seeking to cap levels of liability for non-payment of tax.
“While the UK is perilously close to recessional phase, businesses must have a clear focus on cash flow and look to save costs where possible. Directors must continue to plan strategically for the ever higher costs of ‘doing business,” he added.