Number of UK businesses in financial distress ‘at two-decade high’
Summary
BTG reported that 738,144 UK businesses were in significant financial distress in the third quarter, the highest level since its report began in 2004. Distress rose in hospitality and food and drug retail, while businesses owed HMRC £27.3bn in unpaid VAT, corporation tax and PAYE at the end of August.Key Facts
- The number of businesses in significant financial distress rose 1.6% year over year in the third quarter.
- Support services had 118,695 businesses in significant distress, construction had 108,340, and real estate had 99,908.
- The number of bars and restaurants in distress rose 5% to 18,866.
- Distressed food and drug retailers increased by more than 7% to 19,269.
- Businesses owed HMRC £27.3bn in VAT, corporation tax and PAYE arrears at the end of August.
- About £24bn of tax arrears has been recovered since the pandemic-era peak of £51.3bn.
- The article says the chancellor planned to present a budget on Wednesday and had pledged to give households and businesses more breathing space.
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