Lancashire sees 27% increase in business distress since EU referendum

By Begbies Traynor

18 Oct 2019

ian-mcculloch.jpg

Research from the Preston office of insolvency specialists Begbies Traynor, reveals there has been a 27% increase in the number of firms in Lancashire suffering financial distress since the EU referendum. 

8,695 businesses in the region were reported as experiencing significant* financial distress at the end of Q3 2019, a 27% increase from the end of Q3 2016 where the figure was just 6,837. 

There has also a marked increase in the number of businesses in critical** financial distress during the past twelve months - often a precursor to formal insolvency – with a substantial 33% year-on-year rise. 

The latest Red Flag Alert data found that the industries experiencing the greatest levels of distress in Lancashire are Construction (1,290 companies), Support Services (1,162), and Real Estate and Property (846).

Since the EU referendum in June 2016, the construction sector has seen a 13% increase in distress. The support services sector has seen a 32% increase, with the real estate and property sector seeing a worrying 61% increase.

Ian McCulloch, partner at Begbies Traynor in Preston, said: “Three years on from the referendum it is clear that many businesses have struggled with the lack of certainty created by Brexit. As we enter the final furlong in this latest round of negotiations, boardrooms across Lancashire remain uncertain. The nature of the deal Britain is able to strike with the EU, if indeed one is reached at all, will be a huge factor in how businesses across the country, including Lancashire, will perform in 2020.

“Much investment across Lancashire, and in Preston in particular, has been on hold as businesses have held back on big decisions amidst Brexit uncertainty. 

Many companies have their hands tied by not knowing what the state of play will be post-Brexit and whether the agreements or contracts they currently have in place will still be valid following Britain’s exit from the EU. 

“The substantial increase in critical distress since the referendum is worrying and means that jobs and livelihoods could well be on the line if directors don’t take swift action to remedy this downward trend.”

Latest news

1

Double delight for Vincents two newest solicitors Beth Laws and Yasmine Dragan at Vincents Solicitors’ office in Winckley Square Preston

Double delight for Vincents two newest solicitors

14 Feb 2025

2

Bowker Motor Group celebrates record number of apprentices in 40 year history Bowker Preston BMW Apprentices.png.png

Bowker Motor Group celebrates record number of apprentices in 40 year history

13 Feb 2025

3

FWP transforms Health-Based Places of Safety for NHS trust One of the Tameside suites

FWP transforms Health-Based Places of Safety for NHS trust

13 Feb 2025

4

Pleasure Beach partners with industry giant Coca-Cola Blackpool Pleasure Beach

Pleasure Beach partners with industry giant Coca-Cola

13 Feb 2025

5

Prestigious honour given to Mark Birchall at Michelin Guide Awards Mark Birchall Courtesy Michelin

Prestigious honour given to Mark Birchall at Michelin Guide Awards

12 Feb 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Skills Bootcamp in Procurement - Cohort 3
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Awards
14 Jan 2025 - 18 Mar 2025

Skills Bootcamp in Procurement - Cohort 3

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

Understanding & Preventing Sexual Harassment - Creating Safe & Respectful Workplaces
Supporting Women's Health in Your Teams A Path to Success-3.png.png
LBV Hub Webinar
21 Feb 2025 - 21 Feb 2025

Understanding & Preventing Sexual Harassment - Creating Safe & Respectful Workplaces

*, Online, *

12:30 - 13:30

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Preston Freelancer Meet-Up: February
Freelancer Meet-Up Feb.png.png
LBV Hub Networking
26 Feb 2025 - 26 Feb 2025

Preston Freelancer Meet-Up: February

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Women's Health champion training
Supporting Women's Health in Your Teams A Path to Success-6.png.png
LBV Hub Webinar
26 Feb 2025 - 26 Feb 2025

Women's Health champion training

*, Online, *

10:00 - 16:00

Level 3 Emergency First Aid at Work Course - In Person
RKMS ACADEMY LOGO - BLACK AND ORANGE.png.png
LBV Hub Webinar
26 Feb 2025 - 26 Feb 2025

Level 3 Emergency First Aid at Work Course - In Person

RKMS Group , Blackpool, FY42DP

09:30 - 17:00

Employment Law, Tax and Payroll Update - East Lancashire
PM and M event
LBV Hub Seminars
26 Feb 2025 - 26 Feb 2025

Employment Law, Tax and Payroll Update - East Lancashire

Accrington Stanley Football Club, Accrington, BB5 5BX

08:00 - 10:00

Kickstart Networking - Crazy Golf at Level, Preston
Kickstart Crazy Golf.png.png
LBV Hub Networking
27 Feb 2025 - 27 Feb 2025

Kickstart Networking - Crazy Golf at Level, Preston

Level, Preston, PR1 1HT

16:00 - 18:00

StackedX with PM+M and CFO Techstack
LBV Hub Seminars
27 Feb 2025 - 27 Feb 2025

StackedX with PM+M and CFO Techstack

Red Hall Hotel, Bury, BL9 5NA

08:00 - 10:00

Post Employee Ownership Trust: What's the story?
LBV image.jpg.jpg
LBV Hub Seminars
04 Mar 2025 - 04 Mar 2025

Post Employee Ownership Trust: What's the story?

Brabners, Preston, PR5 6AW

11:00 - 12:30

North West (Preston) Finance Leaders Networking Event
MHA-BTI Logo_black (002).jpg.jpg
LBV Hub Networking
05 Mar 2025

North West (Preston) Finance Leaders Networking Event

Farington Lodge Hotel, Stanifield Lane Farington, Preston, PR25 4QR

08:00 - 10:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV120 Online Graphic 1
Subscribe now

Weekly news bulletin