A closed sign outside a shuttered shop unit in Brixton (Dominic Lipinski/PA)
(Picture: PA Archive)The extent of the economic threat posed to small businesses by the cost-of-living crisis and soaring inflation has been laid bare by the insolvency specialist Begbies Traynor just hours after the Bank of England’s stark warning of a long and deep recession.
The business recovery consultancy’s “Red Flag Alert” found that almost 2,000 companies were in critical financial distress by the end of the second quarter, a rise of by 37% year-on-year, as soaring inflation took a heavier toll, with its rate in the real economy far exceeding official figures.
