Fri, 24 Jan 2025

Record numbers of businesses in financial distress

There's been a record jump in the number of companies in critical financial distress, according to insolvency specialists.
Insolvency experts say hospitality, leisure and retail sectors are among those most affected due to their typically "razor-thin margins". Begbies Traynor's executive chairman Ric Traynor warned that thousands of UK businesses could struggle to survive in 2025. Consumer confidence has also fallen with people becoming more cautious about spending on big-ticket items. A separate report by GfK found that while intentions to spend fell, the number of people putting money aside in savings rose. This is seen as a negative for the economy, indicating concerns over future economic prospects. Begbies Traynor cited HMRC's increased aggression in recovering overdue taxes owed as one factor contributing to the rise in financial distress. Other factors included higher national insurance contributions and minimum wage increases announced at the last Budget.
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