Record business failures forecast
Commercial insurance
29th June 2009
The UK will witness record levels of business failures over the next couple of years, it has been predicted.
According to a report by BDO Stoy Hayward, rising levels of unemployment and a fall in disposable income expansion will impact upon consumer spending and push up the number of companies that collapse, which may affect business insurance customers.
The accountant and advisor stated that business failures this year will be a record 36,200, reaching 40,400 in 2010, although low interest rates and fiscal measures aimed at boosting the economy are likely to improve the situation in 2011.
Commenting on the predictions, BDO Stoy Hayward head of business restructuring Shay Bannon observed: "Business failures in Great Britain are rising unabated as the fall-out of the economic downturn becomes ever clearer."
Earlier this month, the government unveiled a new consultation on the revision of insolvency rules to provide greater support to those companies facing financial problems.
For more information on how Giles can help you with your business insurance, Click here.
