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Story perspectives

UK Corporate Profits Plunge to Lowest Since 1982

1/1/2026

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Story summary
  • Bank of America analysis shows UK corporate profits are at their lowest since 1982.
  • Rising employment costs under Labour, including a £25 billion National Insurance rise, squeezed margins.
  • The economy grew 0.1% in the last quarter and may stagnate after tax increases.
  • Official figures show the UK has the weakest investment levels in the G7.
  • Experts warn the trend could trigger a cycle of reduced profits and sluggish growth.