Record number of businesses plunged into significant financial distress

A record number of businesses are ‘teetering on the edge of collapse’ according to new research by Begbies Traynor.

The ‘Red Flag Alert’ research shows thousands of British firms have been plunged into significant financial distress this year.

The figure soared by a third to nearly 633,000 companies in the three months to the end of September, when compared to the previous year.

That was 32 per cent more than the same period last year and a 5.1 per cent increase on the previous three months.

The support services, construction and property sectors had the highest number of companies struggling.

With 21 of the 22 sectors monitored by Red Flag Alert reporting the level of ‘significant’ financial distress increasing in Q3 2024 versus the prior quarter, the latest data highlights how the heightened level of economic uncertainty is impacting businesses in almost every corner of the economy.