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Saturday
May152010

UK Companies are Feeling the Pinch

I have noticed that although the recession seems to be officially over in the UK, many companies are struggling more than ever to get back to some semblance of normality.  Many businesses have struggled to get through the tough times, but although the official announcement was received some time ago concerning the end of the recession, more than 160,000 UK businesses are still in dire straits.

There is a regular three monthly update which effectively ‘takes the temperature’ of businesses in the UK to see how they are coping.  This is not unique to recessionary times; it can provide a barometer of how good or bad business is at all times.  The most recent update revealed that there are now 14% more businesses in trouble financially than there were in the three months preceding that.

This percentage is really an average of all the sectors however.  I noticed that property services were about the worst hit of all the types of businesses in operation, with 42% of companies in that sector experiencing dire problems.

This is very disheartening for businesses everywhere.  I have long felt that we prematurely breathed a sigh of relief once the recession was announced as being over.  I have noticed some businesses only started to experience real problems at around the same time that announcement was made.

Needless to say creditors will not be feeling secure with this news.  The UK economy needs some good news as it continues its very slow recovery, and this is not it.  We can only hope that it eases again in the next three month period.

Meanwhile if you own a business and you are concerned about your financial situation or tax liabilities, contact us here at St Matthew now for professional advice.

 



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