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Hundreds of Swindon businesses are considered to be in significant financial distress. Analysts at Begbies Traynor updated their Red Flag Alert which monitors the health of UK companies. The latest figure for the third quarter of this year included 1,080 businesses in the Swindon area – which is 42 per cent more than this time last year and nearly two per cent more than in Q2 of 2024.
Ongoing economic uncertainty, inflationary pressures and debt burdens, along with persisting weakness in consumer confidence, are all contributing to these financial woes. Support services businesses are reportedly the most affected (146), while the highest increases in significant distress are coming from the real estate (48 per cent) and property and construction (29 per cent) business sectors. Be the first to know with the Swindon Advertiser📱 Our flash sale brings stories directly to you.
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co/ayrpkI4RBy #KnowYourTown #SpecialOffer pic.twitter.com/jxF0pfApg9 Nationally, the latest Red Flag Alert research for Q3 2024 recorded 632,756 businesses in significant distress across the UK, which is an increase of 32 per cent on the same period in 2023.
Meanwhile, the number of businesses in the most severe category of ‘critical’ financial distress has decreased, with a quarterly fall of 23 per cent to 31,201, which is a year-on-year drop of 17 per cent. Julie Palmer, partner at Begbies Traynor in Swindon, said the government’s upcoming autumn Budget will play a big role in helping business owners plan for the future and see if better times are ahead. She added: “There is no hiding from the fact that 2024 has been hard to navigate for companies, and the final quarter looks no different, as a high degree of uncertainty weighs on the UK economy.
“While the decline we have seen in 'critical' financial distress at a national level is a welcome surprise after a challenging year, it is too early to say if this is a trend that will continue into the autumn – traditionally a busy period for corporate insolvencies. “While there are tentative signs of a recovery, uncertainty continues to loom over Swindon businesses. “In response, many business leaders are holding their breath as they await clarity over what the forthcoming Budget will bring.
“With wider geopolitical issues also having an impact, the only certainty is uncertainty, and we know this is bad for both business and investment alike. “Combine this high level of uncertainty with the expectation of higher business costs post the Autumn Budget and it is clear that the economy is far from being out of the woods.” Begbies Traynor Group is a business recovery, financial advisory and property services consultancy, providing services nationally from a network of UK locations through two operating divisions.
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