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PAE
How rising interest
rates are affecting
UK businesses
From chip shops to tech start-ups, and even large,
well-established companies, rising interest rates have
had an impact right across the business world. After
14 consecutive base rate hikes by the Bank of England
since 2021, this is causing particular problems for
companies with a lot of debt.
e recently saw the chaos this can cause More recently, budget retailer Wilko’s
Wwhen English utility Thames Water borrowing not only affected the business and
nearly collapsed under the weight of its debt its shareholders, but also its employees when
and had to seek emergency funding from its its recent collapse put 12,500 jobs at risk.
shareholders earlier this year.
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