South East top of business debt league table

Small firms in the South East made nearly 1 in 5 calls to a business debt helpline this year, a study has revealed.

Business Debtline, run by Money Advice Trust, found that there was almost double the amount of calls from the area (which does not include London) than from any other region in the UK. The West Midlands and North West were the next most troubled areas, accounting for 11% of the calls each.

Joanna Elson OBE, chief executive of Money Advice Trust, said: “The volume of calls coming into Business Debtline from the South East is a concern, and we know that the recession has hit businesses in this area particularly hard.”

The figures paint a grim picture for businesses in the South, with one in ten calls coming from the South West, and a further 9% from London. Overall, small businesses in the South made up 38% of the calls to the helpline in 2010, prompting fears of tougher times ahead for smaller firms.

Elson added: “Clearly times are hard, and many small businesses are having to face the harsh brunt of a deep recession, the legacy of which will not disappear soon.”

© Crimson Business Ltd. 2010