Business Recovery and Insolvency Practitioners

NEWS: Election 2005 and our predictions for the next 6 months

Added: 13/04/2005

With the general election rapidly approaching, we find ourselves bombarded with conflicting views and arguments on the status of the Great British economy. It seems that several times a day, smirking Tony repeatedly proclaims that the economy is in better shape than it ever has been and that a future under his leadership will be secure and prosperous. From the other camps however, we hear different views on the economy and more cautious language when describing their own projections.

Away from the spin and lies, we only have to look at our own neighbourhoods to get a true idea of how Great Britain Plc is performing: How many of us have exploited spiraling house prices to remortgage and pay for that new car? How many of us have taken advantage of 0% credit deals to buy a TV or a sofa? How many of us have credit card balances with which we regularly pay just the minimum? There has inarguably been a shift away from the culture of saving, to one of decadent consumerism.

The corporate picture is less transparent. The conversations that take place behind closed board room doors can largely remain hidden from the public, so it is harder to spot trends, but a two year slump in formal corporate insolvency proceedings does indicate that like many individuals, companies have benefited from low interest rates and the abundant offers of credit.

So, in agreement with Mr Blair, the economy has grown considerably in recent years – particularly in the retail sector, but the questions which he never appears to want to deal with are the most salient: how much of that growth has been funded by debt and more importantly, what is going to happen when that debt has to be repaid, or simply becomes too expensive to service?

As Insolvency Practitioners, we meet individuals from a broad spectrum of society and are introduced to companies from a diverse range of industries, and there is an emerging trend that both companies and individuals are facing a worrying erosion of their equity.

With business failures up 3% compared to this point last year and wide reports of diminishing consumer confidence, it is difficult to take comfort from the words of politicians.

Whatever the future may hold, and whichever party takes us forward over the next term, it is unlikely that the economic conditions witnessed over the past five years will be replicated. As we are reminded on a daily basis, on May 5th every voter has a decision to make, but whilst that decision will shape the future our country, it cannot change or lessen the impact that the past few years will have on individuals and companies alike. The most important decisions which face us now, lie much closer to home and involve making the choice to take control of our financial stability and in situations that appear beyond salvage, to seek the advice of professionals.

Times of economic uncertainty have traditionally translated to busy times for Poppleton & Appleby and we take pride from knowing that we will assist and advise all those facing financial troubles and knowing that whilst any time of financial insecurity can be stressful for those involved, our experience means that effective solutions are always available.

The Government of the day may change every five years, but Poppleton & Appleby have been here since 1885 providing a quality service to industry, the professions, and individuals for 120 years.

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