{"id":20100,"date":"2025-08-21T10:14:00","date_gmt":"2025-08-21T09:14:00","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/specialist-sectors-blog\/?p=20100"},"modified":"2025-08-21T09:14:08","modified_gmt":"2025-08-21T09:14:08","slug":"how-could-record-government-borrowing-hurt-your-business","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/specialist-sectors-blog\/how-could-record-government-borrowing-hurt-your-business\/","title":{"rendered":"How could record Government borrowing hurt your business?"},"content":{"rendered":"

With June\u2019s borrowing hitting \u00a320.7\u202fbillion, the second\u2011highest ever for the month<\/a>, UK public finances are creaking under pressure.<\/p>\n

With a range of ideas being thrown around on how to address the ever-increasing hole in the public purse, it may be your business that gets caught in the crossfire.<\/p>\n

We are going to take a look at how the Government\u2019s questionable financial strategies could come back to bite your business and what you can do about it.<\/p>\n

Why is borrowing so high?<\/strong><\/p>\n

Global uncertainty and volatile markets have chipped away at the pound\u2019s strength, while the contentious debate around welfare reform and the generous Spending Review<\/a> promises have left a gaping hole in the Treasury\u2019s budget.<\/p>\n

To plug it, the Chancellor borrowed \u00a36.6\u202fbillion more than last June<\/a>, leaning on debt as a stopgap solution.<\/p>\n

As a business owner, you know that borrowing is only a short-term solution and that tougher measures will inevitably follow a budget balanced by borrowing.<\/p>\n

There is an ongoing discussion around how the Government will eventually address the financial challenges facing the country.<\/p>\n

A wealth tax is being debated, but there are mixed reports on whether this will cause an exodus of the rich and powerful.<\/p>\n

Even if these reports are exaggerated, they could be enough to unsettle the Government into dropping the plan.<\/p>\n

That will leave those less well-off to pick up the bill.<\/p>\n

Will my business face more taxes?<\/strong><\/p>\n

Increased Corporation Tax is certainly one way that Labour could raise more money while sticking to their campaign pledge of not placing the cost on working people.<\/p>\n

However, the impact of the excessive borrowing is likely to be more far-reaching than simply having your business pay the difference.<\/p>\n

This excessive borrowing is a sign of financial hardship and an indicator that it may not lift anytime soon.<\/p>\n

The average person has less spending power than they did before, as rising food prices<\/a> contribute to increasing inflation.<\/p>\n

The monthly cost of renting a home has risen by \u00a3221 in three years,<\/a> and inflation is causing mortgage rates to be similarly punishing.<\/p>\n

This will have a massive impact on all businesses, but those that provide goods and services that are not considered essential may face the biggest blow.<\/p>\n

As customers become increasingly less willing to part with their hard-earned cash, businesses may begin to see cash flow issues come up more frequently than would typically be expected.<\/p>\n

This is paired with the tumultuous global economy that has caused major supply chain, import, and export issues for many businesses.<\/p>\n

In these trying times, having a clear vision of the future is imperative for businesses to survive.<\/p>\n

We are on hand to help you plan for the future and adjust your business\u2019s financial trajectory to help you stay afloat in increasingly troubled waters.<\/p>\n

Don\u2019t let the Government\u2019s badly balanced budget be the end of your business. <\/strong>Speak to our team today<\/strong><\/a>!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

With June\u2019s borrowing hitting \u00a320.7\u202fbillion, the second\u2011highest ever for the month, UK public finances are creaking under pressure.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_s2mail":"","footnotes":""},"categories":[11,17,29,14],"tags":[],"class_list":["post-20100","post","type-post","status-publish","format-standard","hentry","category-blog","category-business","category-rob-blair","category-tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.moorethompson.co.uk\/specialist-sectors-blog\/wp-json\/wp\/v2\/posts\/20100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.moorethompson.co.uk\/specialist-sectors-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moorethompson.co.uk\/specialist-sectors-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/specialist-sectors-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/specialist-sectors-blog\/wp-json\/wp\/v2\/comments?post=20100"}],"version-history":[{"count":2,"href":"https:\/\/www.moorethompson.co.uk\/specialist-sectors-blog\/wp-json\/wp\/v2\/posts\/20100\/revisions"}],"predecessor-version":[{"id":20103,"href":"https:\/\/www.moorethompson.co.uk\/specialist-sectors-blog\/wp-json\/wp\/v2\/posts\/20100\/revisions\/20103"}],"wp:attachment":[{"href":"https:\/\/www.moorethompson.co.uk\/specialist-sectors-blog\/wp-json\/wp\/v2\/media?parent=20100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/specialist-sectors-blog\/wp-json\/wp\/v2\/categories?post=20100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/specialist-sectors-blog\/wp-json\/wp\/v2\/tags?post=20100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}