UK firms less likely to borrow than at any time since financial crash

The UK’s leading companies are less inclined to borrow now than at any point since the financial crisis of 2008, a survey of directors has found.

by | 3 Jan, 2023

Demand for credit is flagging among chief financial officers, with barely a quarter of those polled at FTSE 100 and FTSE 250 companies expecting to increase borrowing in the next year.

The quarterly survey by the accountancy firm Deloitte found CFOs now more reluctant to borrow from banks or issue debt than they had been since 2008. With the Bank of England having raised interest rates to 3.5%, about 70% of those questioned now rate credit as costly, and almost half said that new credit was hard to get.

Despite a turbulent year of rising inflation and supply chain disruption on top of rising interest rates, not all the sentiment among the businesses – including more than 50 UK-listed companies – was negative.

Deloitte found that the perception of external risks to businesses, particularly inflation, had eased since peaking earlier this year. Fears of disruption in supply chains, of labour shortages and even higher interest rates have also abated slightly, along with concern over energy prices that had soared since Russia’s invasion of Ukraine.

Read more at The Guardian

More from Financial Accountant

How the UK’s rollback of banking regulations could risk another financial crisis

How the UK’s rollback of banking regulations could risk another financial crisis

Money laundering plays a key role in every part of the illegal drugs industry. Here’s how it works

Money laundering plays a key role in every part of the illegal drugs industry. Here’s how it works

‘I’ve never paid myself’: why the reality for female entrepreneurs doesn’t always match the rhetoric

‘I’ve never paid myself’: why the reality for female entrepreneurs doesn’t always match the rhetoric

Sustainability ideals are often crushed by corporate demands. Here’s how businesses can let them flourish

Sustainability ideals are often crushed by corporate demands. Here’s how businesses can let them flourish

‘I was left with nothing.’ Why apprentices are being pushed into the informal economy

‘I was left with nothing.’ Why apprentices are being pushed into the informal economy

In the struggle to get Britain working, the long shadow of austerity could be part of the problem

In the struggle to get Britain working, the long shadow of austerity could be part of the problem

Share This