New research by The Institute of Chartered Accountants in England and Wales (ICAEW) has revealed that the next two years will see the greatest risk of business insolvency due to Brexit.
The ICAEW surveyed those working within the insolvency and business restructuring sectors to see what they perceived to be the three biggest threats to UK businesses over the next two years.
And the results are in:
- 73% said the impact of Brexit
- 56% said a rise in interest rates
- 43% said attitudes of HMRC/banks as creditors.
The survey also explored which industries were most likely to be hit the hardest by the above issues. The main sectors thought to be at risk are:
- care homes
Bob Pinder, ICAEW Regional Director, said:
“We are in no doubt that businesses in the UK face difficult times ahead. We believe that a change in attitudes is critical in order to successfully avoid substantially increased corporate insolvencies – confronting business issues, rather than being ashamed of them.
“Seeking the early help of restructuring and insolvency practitioners enables restructuring of finances, business processes or management to salvage many businesses and bring them back into profit.
“There is no shame in admitting you are struggling – getting help is the bold and right decision.”
Here at Clarke Bell, we outlined the struggles facing the retail sector earlier in the year.
Shockingly, the British Retail Consortium estimates that there will be 8,073 fewer shops by 2020. The factors affecting the retail sector include:
- an increase in business rates
- shifts in consumer spending habits (primarily an increase in online spending)
- an increase in the National Living Wage
- the uncertainty surrounding Brexit.
Business owners need to be aware that there is professional help available to discuss the range of options for those facing insolvency or looking to get back on track. You can have free advice from Clarke Bell to discuss your situation.
“A lot of sectors are experiencing difficulties for a number of reasons, and the uncertainties surrounding Brexit are just adding to the woes of those who are already suffering.
To be honest, I don’t feel very confident that our Government is strong enough to get a good deal from the Brexit negotiations. But, like everyone else, we’ll just have to wait and see what happens.
In the meantime, a lot of clients who have limited companies with cashflow difficulties are finding our £1,995 CVL service a great way of closing their insolvent company. It is a very affordable way to deal with their company’s debts and to meet all their legal requirements.”
For more information
Contact Clarke Bell on 0161 907 4044 or [email protected]