Lincolnshire firms show signs of bounce back – amid concerns recovery may be short lived

Gareth Rusling, who heads Begbies Traynor’s Lincolnshire offices in Lincoln, Scunthorpe and Grimsby, said: “It’s encouraging to see levels of distress falling since the previous quarter, showing that many businesses in Lincolnshire and across the country are benefiting from the easing of Covid restrictions.

“However, the multiple challenges of soaring prices and the ongoing scarcity of raw materials, combined with chronic labour and skills shortages, is weighing heavily on businesses across many sectors. Add to this the pressures of escalating fuel costs, severe shortages of lorry drivers and the ensuing supply chain disruption, and it’s clear this is very rapidly becoming a perfect storm for many businesses.

“At a time when government support measures are being withdrawn and many businesses are also having to face up to paying back loans, there are going to be some tough times ahead.”

He added: “While we all hope post-pandemic economic recovery is on the cards, the worry is that too many small businesses will go under before the Government addresses the serious logistical issues resulting from Brexit and Covid. As ever, small businesses that are struggling financially should seek professional help now before their situation becomes more serious.”

In Lincolnshire, industrial transportation and logistics saw a 20% decline in significant distress since Q2 of this year, with 254 businesses struggling. Food and drug retailers saw a 23% decrease on the previous quarter, with distress affecting 139 businesses. Despite a 12% drop in the numbers of construction firms struggling with significant financial distress since the previous quarter, 975 businesses in the region were still affected.