Construction has been named as the sector with the most firms facing “critical” financial pressure, with almost 7,000 businesses at risk of bankruptcy.
In its latest Red Flag Alert report covering the fourth quarter (Q4) of last year, insolvency practitioner Begbies Traynor said that 6,830 construction firms in the UK ended 2024 in “critical financial distress”.
It defines this category as “often a precursor to formal bankruptcy”.
In Q4, construction had the unwanted status of heading the “critical” category, ahead of support services (6,711 firms) and real estate and property services (6,697).
Tax changes imposed in last October’s budget will increase the financial strain on construction firms and other businesses this…
