According to insolvency specialists, the number of British companies in critical financial difficulty has increased in a record way.
This is accompanied by a drop in consumer confidence, who are more and more numerous to worry about the financial prospects of the United Kingdom as well as their own.
In their latest report, Begbies Traynor’s insolvency experts said that a company can be considered in critical financial difficulty if it has an in front of a county court of more than £ 5,000 or if it faces to a liquidation request.
The most difficult companies are those of the hotel, leisure and retail.
Even if the number of companies in critical financial difficulty often increases at the end of the year, the report notes a record increase of 50 % between September and December 2024, bringing the number of companies in this category to 46,583 companies.
One of the factors was that the HMRC became more aggressive in the collection of taxes due.
The number of British companies considered to be in significant financial difficulty also increased by 3.5 % compared to the previous quarter, reaching 654,765.
Ric Traynor, executive president of Begbies Traynor, said: “After a historical increase in critical financial difficulties during the last quarter of 2024, it is clear that many British companies in difficulty find almost impossible to meet the challenges they face the dawn of 2025. “
“For many companies that were already faced with low consumer confidence and higher borrowing costs, the increase in national insurance contributions and the national minimum wage, announced during the last budget, could be gout water that overflowed the vase. “
He said sectors such as retail and hotels could be particularly affected because they “generally work with very thin margins”.
“I fear that 2025 will be a decisive moment when thousands of British companies take the time after fought for surviving for years,” he added.
A separate report has shown a slight decrease in consumer confidence in their own finances and a much more marked drop in the prospects of the economy as a whole.
GFK’s long -standing survey has shown that people’s intentions to spend on expensive items have decreased while the number of people planning to put on side money has increased.
GFK said it was negative for the economy because it was a sign that many people saw dark days to come and put money aside for their safety.
Neil Bellamy, director of consumer studies at GFK, said: “The new year is traditionally a period of change, but in view of these figures, consumers do not think that things change for the best.
“These figures point out that consumers lose confidence in the economic perspectives of the United Kingdom.”
