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The higher employment costs announced in last month’s budget are likely to push more companies into financial trouble, insolvency advisers Begbies Traynor warned this morning.

Begbies Traynor also cautioned that firms will be hurt by the prospect that UK borowing costs remain high for longer than hoped.

“Additional headwinds for UK business from increased employment costs and the prospect of higher for longer interest rates are likely to extend the period of elevated insolvency levels, increasing the need for advice and support from our insolvency and business recovery professionals.”

“We have made a very good start to the year with double digit growth in revenue and profits driven by positive momentum across the group. This gives us confidence that we will deliver market expectations for the year as a whole.

During Trump’s first term, the Brent-WTI price differential peaked at $7.34 per barrel in 2019, roughly a 118% increase from the start of his administration, despite a drive to boost domestic oil and gas production. This was largely driven by buyers’ reluctance to purchase US energy exports.

However, shifts in global energy dynamics mean significant oil price rises are less likely this time around. China, once a major importer of US energy commodities, now sources discounted supplies from Russia, while its domestic economic slowdown has dampened its energy demand. OPEC also has spare production capacity, given it is currently implementing an output cut of 2.2 million barrels a day to support prices.

Unfortunately, the major sticking point to a deal remains food standards, and tariffs may be used to pressure the UK to accept US demands in this regard.