Around one in seven UK companies say they were at risk of collapse, according to a new report from the Office for National Statistics (ONS).
The study saw 14% of UK companies say they have “low or no confidence” that they will survive the next three months. While 40% had moderate confidence that their business would survive the next three months, another 40% had high confidence of making it through the period.
Pessimism was most apparent among hotels and restaurants where 34% of businesses said they would struggle to make it through the next 12 weeks. It was also found that across all industries, 7% of businesses expect to temporarily or permanently close a site in the next fortnight., with 25% of businesses in the accommodation and food service activities industry expecting to close a business site.
Similarly to the impact on turnover, the same four industries had more than 50% of their businesses experiencing a decrease in profits:
- accommodation and food service activities industry, at 73%
- arts, entertainment and recreation industry, at 63%
- education industry (private sector and higher education businesses only), at 56%
- administrative and support service activities industry, at 54%