Struggling businesses hoping for Budget boost says R3 in the North West as it responds to latest insolvency statistics
Local businesses will be hoping for measures which boost economic activity in tomorrow’s Autumn Budget, as latest insolvency figures highlight a concerning upward trend in struggling companies.
This is according to the North West branch of the UK’s restructuring, turnaround and insolvency trade body R3 and comes on the back of new statistics published by the Insolvency Service which show that corporate insolvencies in England and Wales increased by 2% in October to a total of 2,029 compared to the previous month, and by 17% against the October 2024 figure of 1,739.
R3 North West chair Fran Henshaw, a restructuring and insolvency director at Menzies LLP, said: “These latest statistics are being published against a background of economic uncertainty, with businesses and consumers alike delaying major financial decisions until they can assess the outcome of tomorrow’s Budget.
“This hesitancy is creating a sense of stagnation, with business owners looking to the Chancellor for measures which boost growth and spending.
“The economic pressure remains considerable, as shown by several high-profile insolvencies announced over the past few weeks, including Pizza Hut, Tomato Energy, Sheffield Wednesday FC and Petrofac. For every failing business that hits the headlines, there are hundreds of small and medium-sized businesses struggling for survival.
“The recent increase in unemployment to 5% indicates companies are having to make difficult decisions about hiring and, potentially, redundancy. With GDP growth also stagnant at 0.1% last quarter, the trading environment is difficult, with higher employment, energy and materials costs.
“At the same time, creditors are becoming more proactive in forcing debts, borrowing costs remain elevated and consumer spending is subdued. These challenges underpin the latest insolvency rates and underline the need for positive, growth-focused measures in the Autumn Budget.
“R3 members remain committed to supporting and advocating for practical solutions which help businesses and individuals navigate these challenges. The profession plays a vital role in the economy, and these latest figures highlight just how important that role is in periods of uncertainty.”