Business Recovery and Insolvency Practitioners

NEWS: Fewer Business Insolvencies in 2004

Added: 12/10/2004

Following a recent report it is projected that fewer businesses will enter into a mode of insolvency this year than in 2003.

It is projected that a total of 15,984 firms will go under during 2004, which is down by 1,562 on last year.

However, the report indicates that an average of 310 firms will collapse each week in 2004 compared with 340 over the previous 12 months.

It is anticipated, however that due to higher fuel taxes, the impact of the minimum wage, and the increase in interest rates that there will be a marked increase in business failures by the end of 2006 which has projected 16,500 businesses will fail.

In addition falling house prices and the prospect of higher interest rates will encourage households to rein in their budgets which will have an affect on a possible downturn on the economy.

Despite gloomy predictions from Unions, the report suggests that fewer manufacturing firms were set to fail in 2004 than at any time over the past decade.

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