Wed, 09 Jun 2010 | BUSINESS NEWS
A business survey has revealed that 18 per cent of small businesses fear they will go insolvent if UK interest rates rise to 4.5%. R3, the turnaround and recovery association, polled over 300 small businesses to see how they would be affected by interest rate rises.
The research shows that the hotel, catering and retail sectors are the most fearful of interest rate rises. Whereas small businesses in the construction and manufacturing industries feel less vulnerable.
By UK region, small businesses in the North West are most concerned about falling into insolvency, whilst businesses in the Midlands are least concerned.
This survey is a reminder that the economic recovery is fragile and could be easily derailed by increases in the base rate.
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