Insolvency: 200,000 businesses may go bankrupt

Insolvency: 200,000 businesses may go bankrupt

An  interest rate rise of just 1% could tip more than 200,000 businesses into administration across the country, a leading insolvency practitioner warned today.

The number of companies suffering from “significant” distress has risen by 34% to 237,362 over the past year despite a recovery in the UK economy they said.

However, the number of businesses in “critical” distress fell 9% to 2,745.

They implored that it is crucially important for the Governor of the Bank of England, Mark Carney, to exercise tightrope precision in his decision on the timing of interest rates rises if he wants the UK to return to more normalised conditions, without initiating an emergency stop on its economic recovery.

Original reporting by the London Evening Standard – 18/7/14

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