The number of companies in the U.K. that are facing financial difficulty rose for the first time in two years, raising concerns about a potential double-dip recession as austerity measures loom, according to The Daily Telegraph. On Monday, insolvency specialist Begbies Traynor reported that nearly 148,000 companies in the U.K. are facing financial trouble even before government spending cuts bite into the economy. The group found that number of companies in “significant” or “critical” distress increased year-over-year for the time since the beginning of 2009.
The report from Begbies showed a 20% increase in the number of financial problems in the last three months of 2010 compared with the previous quarter, although the figure was less gaudy compared with the same period at the end of 2009, at a 4% increase. Meanwhile, director general of the CBI, Richard Lambert, lashed out at the government’s economic policy, calling it “political” and accusing leaders of being “careless of the damage they might do to business and job growth.” Lambert said U.K. officials were failing to consider “the big picture” of their economic policies.
Click here to read the story on business finances from The Daily Telegraph.
Click here for coverage of Lambert’s comments from The Daily Telegraph.