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Insolvency fears for over a quarter of UK businesses

Published on 26 Mar 2010 under category: legal

More than a quarter of businesses (28 per cent) in the UK believe they face insolvency if there is a double-dip recession, claims new research from a trade body.

R3 believes that their research indicates that up to one million businesses out of the UK's five million small firms are fed up of struggling, even though the worst economic conditions have lifted.

In its report, it said: "In short, their chances of surviving another period of difficulty have been dramatically reduced due to the measures they had to resort to in order to survive the first period of recession."

H&M Revenue & Customs' scheme Time to Pay was acting as a lifeline to companies which might go under otherwise, suggested the research.

The hotel and catering sector is the least positive about its prospects, with 47 per cent saying that a double-dip recession could make them insolvent. In contrast, manufacturing industries were the most optimistic with less than a fifth (19 per cent) in fear of the impact of another economic lapse.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.