From BigGo Finance · BigGo Finance · · 1m
UK Businesses Hit Record Distress Before Budget
UK companies face record financial distress as Budget approaches.
In brief
UK companies face record financial distress as Budget approaches. 738,144 UK businesses show significant financial distress ahead of Chancellor John Healey's first Budget. Originally reported by BigGo Finance.
Record Distress Levels
UK businesses in significant financial distress reached 738,144 in Q3, the highest since BTG began tracking in 2004.
Year-on-Year Increase
The number rose 1.6% from the same period last year with 20 of 22 monitored sectors showing higher distress.
Sector Breakdown
Support services had 118,695 distressed firms, construction 108,340, and real estate 99,908.
Hospitality Sector Impact
Bars and restaurants rose 5% to 18,866 distressed firms while food and drug retailers climbed 7% to 19,269.
Critical Distress Decline
Critical distress fell nearly 21% year on year to 44,033 businesses.
HMRC Arrears Total
UK businesses owed £27.3 billion in VAT, corporation tax and PAYE arrears to HMRC as of August.
Budget Impact
Chancellor John Healey's first Budget aims to give households and businesses breathing space amid rising costs.
The bottom line
738,144 UK businesses show significant financial distress ahead of Chancellor John Healey's first Budget.
