Chester 01244 405555

Grosvenor Court
Foregate Street Chester
Cheshire CH1 1HG
DX: 19990 Chester

Shrewsbury 01743 443 043

Lakeside House
Oxon Business Park
Shrewsbury SY3 5HJ
DX: 148563 Shrewsbury 14

Airport City, Manchester 0844 800 8346

Office 129
Manchester Business Park
3000 Aviator Way
Manchester M22 5TG

Send us a message
Our Offices

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...

corporate article jennifer harrison

Agency or Distribution?

4th December, 2019

When looking to market, sell or distribute its products a supplier may choose to appoint an agent or... Read More »

Images for Newsletter - December

Employment Law Newsletter – December Issue 2019

2nd December, 2019

Welcome to our new-look Employment Newsletter.   If you would like to contact a member of the Employment... Read More »

Napping at work…

2nd December, 2019

­­­­­­­­­­­­­­­­­­­­­­It was recently reported on the BBC that the US government is prohibiting staff from sleeping at work.... Read More »

Contact Us