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Company insolvencies are falling - but not for long, say IPs

12 October 2016

Despite the past year of uncertainty surrounding Brexit, the number of UK businesses in insolvency appointments has fallen by 7% in the third quarter, according to research from KPMG. 

However, out of 400 insolvency practitioners surveyed at a recent Pinsent Masons conference, 62% predict company insolvencies will rise substantially in the next year because of the UK’s vote to leave the European Union. 

The retail and manufacturing sectors are expected to be the worst hit as there is likely to be a change in consumer spending, as well as price increases, due to the weakening of the pound. 

Nick Pike, partner at Pinsent Masons, said in a statement, “very little is clear about the terms on which the UK will leave the EU, and so businesses are in a period of great uncertainty.

"Insolvency experts are firmly in agreement that until those issues are resolved, businesses are likely to remain cautious about investment decisions.” 

UK insolvency statistics for Q3 2016 will be released by the government on Friday 28th October.