Business future is 'less bright'

News Article - 22 May 2012
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"This is not the moment to relax", businesses have been warned.

The advice came from Mike Jervis, partner in PricewaterhouseCoopers' Business Recovery Services practice, as the firm predicted that tighter credit conditions and an economic slowdown will negatively affect business performance this year

He told Reuters: "There remain substantial risks going forward owing to the ongoing impact of the credit crunch and concerns about the extent of consumers' spending power."

According to the firm, 11,147 firms in England and Wales became insolvent during 2007, a 7.3 per cent decrease on the previous year.

However, the news provider reports that the British economy grew the fastest in three years last year, at a rate of 3.1 per cent.

This year the outlook is bleaker, with a forecast of less than two per cent, making positive business health less likely.

Ivan Matviak, head of Bank of Scotland Business Banking, recently advised firms to control costs by seeking better deals from service providers and lowering general expenditure.

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