Job losses expected as pressure grows on debt-hit consumers
Job losses expected as pressure grows on debt-hit consumers
Monday 16th June 2008
A new report from DBO Stoy Hayward forecasts that the number of business insolvencies will climb to 19,124 over the next two years.
The increase is set to be fuelled by soaring oil costs impacting on firms' viability and banks becoming less willing to finance business.
In turn, this could be set to propel thousands into unemployment, in a sign that the crunch is continuing to hit the real economy outside the financial sector.
Business restructuring partner at the firm Shay Bannon said: "Six months ago there was hope that business would feel some respite if the Bank of England slashed interest rates. But spiralling inflation figures now means that this is unlikely in the short term.
"With the number of business failures expected to decrease in 2010, there is light at the end of the tunnel. But until then companies need to batten down the hatches and put in place some tactics to weather the storm."
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