Businesses Fear Effects of a Double Dip Recession
17th July, 2010
Although the UK economy is slowly emerging from recession, the effects of the economic downturn have left many businesses weakened. With cuts in government spending, fears of a ‘double dip’ recession are widespread.
Recent research carried out by R3, the trade body for insolvency professionals, reveals that more than a quarter of small businesses in the UK (those with a turnover between £50,000 and £1 million) fear they will become insolvent should the economy suffer a double dip recession.
R3 President Peter Sargent commented, “The low level of business confidence is to be expected. Many struggling businesses drew heavily on their reserves in order to survive and their resources have now begun to run out.
“It is easy to forget that banks are not a company’s only creditors: for many their largest creditor is the Government. With close to 300,000 firms in crucial ‘time to pay’ tax arrangements with HMRC, it seems that a large number of businesses are in need of a financial health check.”
The research showed that owners of manufacturing businesses are the most positive, with fewer than one fifth believing that their businesses will be at risk if the economy suffers a further setback. The hotel and catering sector was the least positive, with almost half of businesses fearing that another recession of similar magnitude could result in them becoming insolvent.
If your company is experiencing problems, contact the Nick Clarke for advice as soon as possible. Nick can be contacted on 01244 405558 or via email here.
You might also be interested in...
Solicitors’ Professional Indemnity Insurance: Run-off and alternative regulators
18th July, 2018
Special Focus: Solicitors’ Professional Indemnity Insurance Run-off – it dominates the thoughts of sole practitioners and partners in smaller law firms in my experience and restricts the ambitions of firms. The SRA could help law firms by relaxing their rules on run-off cover on their Solicitors’ Professional Indemnity Insurance to help firms merge or close more easily. This would protect... Read More »
Senior employment lawyer joins Theatr Clwyd board
17th July, 2018
Helen Watson, Head of Employment Law at Aaron & Partners LLP, has taken up an invitation to become a Trustee of both the Trust Board and the Main Board Theatr Clwyd has bolstered its senior leadership team with the appointment of an experienced employment law solicitor to support its vision of being at the forefront of theatre making... Read More »
Why there is more to CSR than just boosting a company’s ego
6th July, 2018
When a business invests in its community it deserves praise – but it must go beyond that, writes Helen Watson, a trustee at Claire House and partner at Aaron and Partners Solicitors. Corporate social responsibility (CSR) is the link between a company and the community in which it operates. As a trustee on charity boards including Claire House... Read More »