R3 comments on Q1 2017 insolvency statistics

R3 comments on Q1 2017 insolvency statistics

  • R3 notices that corporate insolvency number are starting to move up, noting that "low interest rates, creditor forbearance, and a growing economy mean insolvency numbers are still close to record lows but the past year and a bit has been much more challenging for businesses".
  • They also comment on the pound's fall in value since last year's referendum, saying it "will have hurt importers, while many of the currency hedges that protected larger companies in the immediate aftermath of the referendum will have begun to unwind at the start of the year".
  • R3 also recognise "challenges" including the introduction of the National Living Wage and the rollout of pension auto-enrolment to smaller firms. Rates changes may also hurt businesses in London and the South-East, for example.