Posted on 10/20/2009 10:31:02 AM PDT by blam
Experts Warn Of 'Deluge' Of Insolvencies To Come In The UK
Insolvency experts have warned that there will be a "deluge" of business failures next year. Begbies Traynor said 134,000 business are currently showing "material signs of distress", although this is a fall on the 149,500 in the previous quarter. It said the UK was at the "midpoint of a 'W'- shaped recession, with a deluge of business failures likely in 2010".
By Rupert Neate
Published: 5:39PM BST 20 Oct 2009
Ric Traynor, executive chairman of Begbies Traynor, said: "The UK may be in the eye of the storm. The well-intentioned government efforts to prop up struggling companies [such as tax deferments] may provide a necessary lifeline in the short term, but will ultimately prove futile in many cases. The unemployment and insolvency peaks of this recession remain some way off. Experience of the last four recessions tells us that unemployment levels and corporate and personal insolvencies are lagging indicators."
The manufacturing sector has been among the worst hit, with the number of administrations so far this year up 33pc compared to last year, according to Deloitte.
Business failures surged 78pc in January, says Experian Tough times benefit Begbies TraynorRoss James, of Deloitte, said: "Manufacturing has been under pressure for years but the recession and drop in demand and output has escalated the situation."
[snip]
(Excerpt) Read more at telegraph.co.uk ...
The socialist hen is coming home to roost.
The last Free Republic forum I read about the UK economy,
everyone there was telling me that the UK recession was over.
Gee, just like us (US).
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.