Continuing economic and political uncertainty has left more than 1,500 businesses across Stoke-on-Trent in ‘significant’ financial distress, according to a new report.
Insolvency practitioner Begbie Traynor's latest Red Flag Alert report, which monitors the financial health of UK companies, revealed that the number of struggling businesses in the city has risen to 1,518 - up four per cent between quarter two and three this year.
The data shows that support services and construction sectors are in the most distress in the Potteries while the automotive sector showed 'tentative signs of stability' during the same period.
Nationally, 489,000 UK businesses are in significant financial distress - up by more than 22,000 compared to last year - with real estate and property, construction, retail and travel sectors the most severely affected.
Diane Dunion, partner at Begbies Traynor in Stoke-on-Trent, said: " Three years on from the referendum, the latest Red Flag research highlights just how businesses are struggling as a result of uncertainty.
"Much investment is on hold as businesses wait to see 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 the expected withdrawal. This is stifling growth both in Stoke-on-Trent and nationwide.
"What’s clear is that until businesses and consumers alike are given clarity on the economic situation post-Brexit, stagnation will remain the norm and productivity will continue to suffer."
