Time To Pay squeeze threat to Midlands businesses
New research from insolvency body R3 shows almost a third (29 per cent) of insolvency experts think a squeeze of the Time To Pay facility could be the biggest threat to vulnerable Midlands businesses in 2011, closely followed by the public sector cutbacks and a modest rise in interest rates (both 23 per cent).
R3 Midlands chairman Matthew Hammond, a partner at PwC in the Midlands, said: “Our members have seen how invaluable the Time To Pay scheme has been to businesses. We believe that it is important that it remains available as a breathing space for viable organisations and that it is not used as an alternative credit facility for companies needing constant bailouts in order to operate.”
The survey also revealed that almost half of R3’s members (48 per cent) believe the construction industry will bear the brunt of the impending public sector cuts, with a considerable reduction in spending on education and social housing.
