0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Brexit Impact ‘Likely to Drive Up Business Insolvency Rates’

Licensed UK Insolvency Practitioners FREE Meeting for Company Directors

We can help with serious company debts, HMRC and creditor pressure, VAT/PAYE/Tax arrears, cashflow problems and raising finance.

Brexit Impact ‘Likely to Drive Up Business Insolvency Rates’

Written by: Keith Tully

Reviewed: Thursday 12th October, 2017

The impact of Brexit and the process of Britain departing from the European Union is likely to push up rates of insolvency among businesses throughout the UK.

That’s according to a majority of respondents to a survey of insolvency and business recovery professionals carried out recently by the Institute of Chartered Accountants in England and Wales (ICAEW).

As many as 73 per cent of the insolvency and recovery experts polled cited the impact of Brexit as the foremost threat to the solvency of UK companies over the course of the next few years.

Other issues that experts say could present a challenge to companies across the country in the next 24 months include interest rate rises, the attitudes of HMRC and problems with creditors.

Current expectations are that the retail sector could be the worst hit when it comes to corporate insolvencies in the coming months as the Brexit process unfolds and the Bank of England potentially raises its base rate of interest.

“We are in no doubt that businesses in the UK face difficult times ahead,” said Bob Pinder, a regional director with the ICAEW.

“A sharp and unexpected rise in the cost of doing business can make managing liquidity tough.

“We believe that a change in attitudes is critical in order to successfully avoid substantially increased corporate insolvencies – confronting business issues, rather than being ashamed of them.”

Mr Pinder’s advice to any company concerned about their ability to remain solvent in the coming months is to seek early help from business restructuring experts and insolvency practitioners where relevant and required.

Prime minister Theresa May triggered ‘Article 50’ in late March this year and effectively declared the UK’s intention to depart the EU in two years.

The latest figures from the research firm Capital Economics suggest that confidence about the UK economy was lower among small British businesses in September 2017 than was the case 12 months before, with prolonged uncertainty surrounding Brexit considered a key contributor to that slump.

Only 12 per cent of small business respondents indicated that they felt Brexit would have a positive impact on their revenues, while 39 per cent said its impact would be negative from a revenue perspective.

Keith Tully

Keith Tully

Join Keith Tully on Linked In Join Keith Tully on Google Plus Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts

Who we help

  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships

Contact our team

Jonathan Munnery
Andrew MacKenzie
Julie Palmer
Thomas Mckay
Keith Tully
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Our numbers speak for themselves

Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners