The statistics released today by the Accountant in Bankruptcy show that personal insolvency levels continue to grow compared to the same period Q1 last year; but corporate insolvencies has slightly decreased in respect the previous raising trend.
Commenting on the figures, Kirsty Duncan, RSM restructuring advisory manager in Scotland, said: ‘The continuing upwards trend across all areas of personal insolvency and liquidation paints a worrying picture.
‘But it’s not surprising as we deal with greater uncertainty with a Brexit extension; the potential of no deal Brexit; weakening sterling; a new UK Prime Minister in Boris Johnson; escalating activity in the Middle East; rising UK employment; generally positive GDP growth; and a positively trending FTSE 100. This is a confusing period in the UK.
‘Economic commentators and business leaders spoke of increased output in Q1 of 2019 ahead of the Brexit deadline but stockpiling activity lead to increased economic activity and skewed the statistics. However, as a result of the Brexit extension, we have seen an unwind of the stock holding and thus decreased economic activity. The unwind will have led to improved cashflow within businesses but it will have provided uncertainty to business leaders regarding future pipeline. It remains to be seen whether we will see another increase in production activity in Q3 as we head towards the revised October 31 Brexit deadline.
‘Matters could worsen for individuals and businesses depending on the overall outcome so appropriate contingency planning continues to be important in these unusual circumstances.’