Slow economic growth in the final quarter of 2019 has left more than 1,500 businesses across Stoke-on-Trent in 'significant' financial distress, according to a new report from Begbies Traynor.
The Potteries saw a three percent increase in the number of businesses struggling between quarter three and quarter four last year – now 1,556 – which is also an increase of three percent on the same period in 2018.
The latest Red Flag Alert data – which monitors the financial health of UK companies – revealed that, in Stoke-on-Trent, real estate and property and manufacturing businesses are in the most distress after increasing 13 per cent and four per cent respectively between the period.
More positively, however, some sectors in the city are showing tentative signs of stability with the number of troubled firms in support services and construction down on the previous quarter.
Nationally, 494,000 UK businesses are in significant financial distress, with the real estate and property, support services, construction and retail sectors particularly badly affected – a rise of 81 per cent since 2016.
Diane Dunion, partner at Begbies Traynor in Stoke-on-Trent, said: "Businesses and the UK economy as a whole will want to avoid a repeat performance of 2019, where distress increased to record levels on the back of ongoing uncertainty around Brexit.
"These figures clearly demonstrate the impact of this indecision, so with political certainty and a clear Brexit path, businesses in Stoke-on-Trent should, at last, be able to plan for 2020 with a greater sense of clarity."
She added: "The landscape of UK business is slowly changing. In order to capture the attentions of consumers and clients, businesses need to demonstrate that they not only have a compelling product or service at the right price, but also one that has strong environmental credentials to boot."
