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Insolvencies To Rise On Back Of Fiscal Measures, Report Warns

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Begbies Traynor, the restructuring specialist, said in its Red Flag Alert report that more than 127,000 businesses were in financial distress in the second quarter, owing a total of £69.5bn to creditors and suppliers.

While 21pc fewer businesses were in distress compared with the first quarter, the number is still high by historic standards.

"We are concerned that the levels of business distress will increase again, potentially from the first half of 2011, once the full effects of the coalition government's fiscal tightening measures impact the economy and particularly amongst those private sector businesses most dependant on public sector contracts," said Ric Traynor, executive chairman of Begbies Traynor.

"It will not be until after the Government's Comprehensive Spending Review in October that we will know for certain the allocation of spending cuts, but there is a growing risk that, even if the UK avoids a double dip recession, it could develop a twin track economy, with public-sector dependent industries facing higher levels of financial distress than sectors which are less directly linked to government spending cuts."

Those sectors most heavily dependent on public sector spending include construction, IT, recruitment, advertising and business services. In those sectors alone almost 52,000 companies were experiencing financial distress in the second quarter, before the impact of fiscal tightening had been felt.

I wonder if many of the above who are distressed go under will they then create more new distressed businesses who suddenly won't get paid?

Still £69bn won't cause any issues in our recovering economy.

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thats because Gordon had the vision to lock our recovery in before he left office.

truly,I think we're lost at sea without having a man of his vision at the helm during these troubled times.

remember children,he could have chosen not to lock the recovery in,which would have been a disaster for us all and left the UK on the road to bankruptcy


Well put Senor Pedro!

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Sheep get "dipped"!

Dubble Dip = W/M

Who are your hiDDen masters who have so much distain & hatred of you?

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  • 401 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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