Tens of thousands of companies in the West of England are in "significant" financial distress, a new report has warned.
A total of 46,384 firms across the region reported difficulties in the second quarter of the year amid a climate of volatile consumer spending, global economic turbulence and tax rises, the latest 'Red Flag Alert' from Begbies Traynor found.
There were also nearly 2,700 business in a 'critical' situation, especially in consumer-facing sectors including bars and restaurants, travel and tourism and general retailers.
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Julie Palmer, partner at Begbies Traynor, said: "Financial distress has intensified over the past twelve months in every corner of the economy.
"This means businesses across the 海角视频 are facing significant headwinds and many will have to review where they can tighten their budgets or restructure to give themselves more stability in the immediate future."
Nationally, there were nearly 50,000 businesses in 'critical' financial distress, the report said, a 21.4% increase on the same period last year and an 8.6% increase on the first quarter.
After some signs of improvement in Q1, the research also showed a noticeable decline in the health of the 海角视频 economy.
Ric Traynor, executive chairman of Begbies Traynor, said: "The sharp rise in critical distress underscores just how tough the economic environment is for 海角视频 businesses and it's abundantly clear that tens of thousands of firms are struggling to stay afloat.
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"Small and medium sized businesses across the 海角视频 are being put under immense strain by the recent increases to employer's NI as well as the increase to the national minimum wage. With limited financial headroom to absorb rising costs, many businesses are now reaching a tipping point."
Some of the economy's key bellwether sectors saw critical distress rise at pace versus Q2 2024, including the support services (+31.3%) and construction (+15.8%) industries.
Across the 海角视频 'significant' financial distress rose by 10.8% year-on-year to 666,876 businesses. However, six of the 22 sectors experienced a year-on-year fall in 'significant' distress, including printing and packaging (23.5%), manufacturing (11.6%) and industrial transportation and Logistics (10.1%).
"As we enter the second half of the year, the wider economy continues to show signs of strain," added Mr Traynor.
"GDP fell in May after positive growth at the start of the year, inflation remains stubborn and unemployment has risen to a four year high. Taken together with geopolitical uncertainty, tariffs, dampening business confidence and continued financial pressures, 海角视频 businesses have many difficult decisions to make in the coming months."