{"id":136423,"date":"2024-01-24T14:46:45","date_gmt":"2024-01-24T14:46:45","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=136423"},"modified":"2024-01-24T14:46:45","modified_gmt":"2024-01-24T14:46:45","slug":"uk-construction-sector-significant-financial-distress-almost-8000-firms-facing-collapse","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/uk-construction-sector-significant-financial-distress-almost-8000-firms-facing-collapse\/136423\/","title":{"rendered":"UK construction sector in ‘significant financial distress’ with almost 8,000 firms facing collapse"},"content":{"rendered":"

The latest Begbies Traynor<\/a> report showed that there were over 83,000 construction firms facing ‘significant financial distress’, more than any other UK industry<\/h2>\n

The number of UK construction firms facing financial collapse has increased dramatically, with the number of firms on the near-bankrupt list increasing by 32% on the previous quarter’s figures.<\/p>\n

In Q4 of last year, Begbies Traynor observed that 7,849 firms in construction are now on the brink of collapse.<\/p>\n

The construction sector had the highest number of at-risk businesses in the UK, more so than any other industry.<\/p>\n

‘Unrelenting macroeconomic pressures’ likely to accelerate insolvencies<\/h3>\n

Executive chairman Ric Traynor added: \u201cAs we start the new year, the UK economy is in a difficult position after a challenging 12 months for British businesses who had to grapple with a number of unrelenting macro-economic pressures that made the lives of business leaders difficult.<\/p>\n

\u201cAs a result, we are seeing insolvency rates starting to accelerate in the UK, and our own empirical data highlights how this trend is likely to speed up in 2024 as the environment takes its toll on businesses.<\/p>\n

Inflation may ease, but several companies still face financial collapse<\/h3>\n

\u201cLater this year, we could see some respite for companies as inflation looks like it may reach more palatable levels, which in turn should result in interest rates starting to climb down from current heightened levels.<\/p>\n

\u201cUnfortunately, there are no signs of an easy fix and, with geo-political uncertainty continuing to rise and a hike in the national wage around the corner, the backdrop is hardly improving for an economy that is still firmly in recovery mode post-pandemic.<\/p>\n

\u201cFor many businesses, I fear soldiering on in this environment will prove to be one step too far and I expect thousands of debt-laden businesses to start to fail this year.\u201d<\/p>\n

In total, 47,477 UK firms began 2024 in a near-bankrupt condition<\/h3>\n

Begbies Traynor partner Julie Palmer said: \u201cAfter a difficult year for British businesses that was characterised by high interest rates, rampant inflation<\/a>, weak consumer confidence and rising and unpredictable input costs, we are now seeing this perfect storm impacting every corner of the economy.<\/p>\n

\u201cAs we saw in the previous quarter, the strain being placed on companies has extended well beyond the consumer facing businesses with bellwether sectors, like construction and real estate, now in serious jeopardy as over 15,000 businesses face high risk of failure.<\/p>\n

\u201cSadly, for tens of thousands of British businesses who should be looking ahead to 2024 with some degree of optimism, the new year will bring a fight for survival as the debt storm that has been brewing for years looks like it is breaking across the country.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

The latest Begbies Traynor report showed that there were over 83,000 construction firms facing ‘significant financial distress’, more than any other UK industry.<\/p>\n","protected":false},"author":25,"featured_media":136437,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[20347,908],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-136423","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-administration","9":"tag-economy"},"acf":[],"yoast_head":"\nAlmost 8,000 UK construction firms facing financial collapse<\/title>\n<meta name=\"description\" content=\"There are over 83,000 construction firms facing 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