The number of businesses in ‘significant financial distress’ reached its highest level in more than two decades over the summer, according to a report from an insolvency practitioner.
As the chancellor John Healey prepares to deliver his first Budget today, the Red Flag Report from BTG, formerly Begbies Traynor, found that 738,144 businesses faced significant financial distress in the third quarter of 2026, up 1.6% year on year.
Estate agents and property services recorded the highest increase, with the number of firms in the sector reaching 99,908, up 9.7% compared to Q3 2025.
Construction had 108,340 companies in significant financial distress (+4.6 on the year), while 118,695 businesses delivering support services were in…