A number of UK companies have gone into administration this month, following the Budget announcement. The autumn Budget included an increase to the minimum wage, a cap on salary sacrifice arrangements, and frozen tax thresholds.

One such company is Toolstream, a distributor of hand tools, power tools, fixings, and workwear to retailers, wholesalers, and merchants. Administrators said that the solvency of the company was impacted in the aftermath of the Covid supply crisis, which has affected trading conditions and profitability. Leaseco 23, which owns dozens of commercial units in Leeds, also went into administration.

Although the company has not announced the reason for this, it recently filed its accounts for 2024, suggesting concerns with its finances. Also shutting is EML, a Peterborough contractor specialising in commercial and industrial electrical work.

They delivered green energy solutions, including electric vehicle charging points. Warwick Ward is also in administration after attempts to refinance, sell, and find new investors failed. The Barnsley-based stockist and supplier of earthmoving and waste recycling machinery attributed this to “strong economic headwinds”. Cambridgeshire structural steel contractor SDM Fabrication has also entered administration, citing a “subdued” market outlook and a decline in opportunities.

Another business entering administration is EJ Taylor & Sons, a Chelmsford-based civils and groundworks contractor. The company stated that the Notice of Intention provides the company with “breathing space” to find potential buyers.

Versarien, a Gloucestershire engineering firm, is also hoping to find a buyer after filing a Notice of Intention to appoint administrators.

This comes after it was revealed that the number of UK business owners voluntarily shutting their businesses has hit the highest rate since the pandemic. Figures from Companies House showed the number of solvent businesses entering liquidation surged during the 2024-25 tax year.

Tax advisers told the Financial Times that they saw this increase after Rachel Reeves announced a rise in rates on business asset disposal relief during the 2024 autumn Budget.

Multiple major companies have managed to avoid closure by being bought out. Claire’s, Hobbycraft, and WHSmith were all bought by Modella Capital in 2024 and 2025. Poundland avoided collapsing after a turnaround plan was approved just days before the company was due to run out of money.