Lamport Bassitt Solicitors - Legal News - Interest rate increases 'would cause rise in corporate insolvencies'


	LATEST LATEST LEGAL NEWS ARCHIVE		LATEST NEWS & EVENTS Interest rate increases 'would cause rise in corporate insolvencies' The number of corporate insolvencies in the UK would increase if interest rates were to rise, it has been claimed. According to R3, if such rates went up by more than four per cent, almost one in five small businesses would be at risk. It conducted a survey of small firms and noted that 18 per cent of respondents reported they would no longer be viable if rates interest grew by between four and five per cent. Responding to the figures, R3 president Steven Law said: "For businesses that are repaying bank loans and rely on consumer spending, an increase in interest rates would be a double blow." He added that companies operating in the hotel, catering and retail sectors are most likely to be affected by interest rates going up, while those in the construction and manufacturing industries are less likely to be affected. Earlier this month, the Bank of England voted to keep the base rate at 0.5 per cent. Posted by Helen Causer Related Articles: 8/5/2012 - More companies fail as personal insolvencies fall 23/4/2012 - Landlords and insurers unite behind insolvency law reform 19/4/2012 - Enterprise Act 'does not need radical overhaul' 13/4/2012 - Retail insolvency rate up 15% as rent payments bite 28/3/2012 - Business insolvencies on the rise More Insolvency & Restructuring News