Currently 554,554 UK businesses are in ‘significant’ financial distress, marking a 30.8% rise compared to Q1 2023. This deterioration affects all twenty-two sectors covered by the research. Furthermore, levels of more severe ‘critical’ financial distress have surged by 20.1% compared to Q1 2023, impacting a total of 40,174 UK businesses. The situation is particularly concerning in the Construction, Real Estate, Financial Services, and Support Services sectors. Additionally, Red Flag Alert’s historical data indicates that a large percentage of businesses currently experiencing ‘significant’ financial distress are likely to progress toward ‘critical’ financial distress if the economic backdrop does not improve. To read Begbies Traynor’s news release, go to https://www.begbies-traynorgroup.com/news/business-health-statistics/over-half-a-million-uk-businesses-fighting-for-survival-as-uk-economy-stagnates.