Mixed signals for UK businesses

No wonder we’re confused!

On the one hand we are being told that lower interest rates will ease inflation and lift the economy and house prices.

On the other, we have a dire prediction that approximately 47,000 UK companies are on the brink of collapse after a 25% jump in the number of businesses facing critical financial distress in the final three months of 2023.

At the same time a survey by jobs website Totaljobs, as revealed that almost half the firms they asked were intending to review pay and benefits and possibly improve them in order to retain staff.

Furthermore, more than twice as many British industries reported rising demand last month, according to the latest Lloyds Bank UK Sector Tracker.

But the benefits of any improvements are not evenly spread as the Resolution Foundation points out.

While it says the services sector is booming, “London is capturing an ever-bigger share of the UK’s service sector exports”.

Meanwhile there is also speculation that the UK may already be in a “technical” recession.

So what are businesses to make of all this?

It could be argued that it is the perfect storm.

And what do you do when it is stormy?

You take cover and take precautions.

That means keeping up to date records, tracking cash flow rigorously, being careful not to expand too quickly and if you are having cash flow and other problems talk to someone such as a restructuring advisor to get a handle on the position your business is really in.

If you are in need of an informal chat we’re here for you, You can call, message or email us to set up a date.

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