78% rise in businesses facing critical financial distress

Latest Red Flag Alert data has revealed a 78% year-on-year increase in ‘critical’ financial distress as higher taxes on businesses, economic uncertainty and inflation weighed on the UK economy. As of 30th September 2025, 55,530 companies were in ‘critical’ financial distress, a 12.6% rise on the previous quarter (Q2 2025: 49,309). Notably, this rise in ‘critical’…

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Number of businesses facing significant financial distress increases by 5%

Latest Red Flag Alert research has highlighted the challenging conditions UK businesses continue to face, with the number of companies facing ‘significant’ financial distress up 5% in Q3 2024 to 632,756 businesses (Q2 2024: 601,950). The steady increase in companies experiencing ‘significant’ financial distress was driven by noticeable increases in distress in the Utilities (+19.3%),…

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Over half a million businesses facing ‘significant’ financial distress

Latest Begbies Traynor Red Flag Alert research, which has provided a snapshot of British corporate health for over 15 years, highlights the speed at which financial distress has accelerated over the last 12 months, with 554,554 UK businesses now in ‘significant’ financial distress – a 30.8% rise compared to Quarter 1 2023. More serious ‘critical’…

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Sharp rise in the number of businesses in ‘critical’ financial distress

The latest Begbies Traynor Red Flag Alert report has painted a worrying picture forbusinesses with nearly 40,000 companies are revealed to be in a critical financial situation as the pressure of higher interest rates, resilient inflation and weaker consumer confidence take their toll. Begbies Traynor says that these pressures are now clearly being seen beyond…

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