Midland’s economy will recover during 2013

Seventy four per cent of accountants in the Midlands are confident that the economy will start to recover during 2013, according to a recent survey conducted by leading insolvency experts, Cranfield Business Recovery.

Following continuous speculation about the state of the UK economy throughout the media, Cranfield decided to question professionals who are at the coalface of dealing with the business community first-hand.  The company conducted a survey across a broad section of leading accountants throughout the region to garner their comments and opinions on the Midlands economy.

Tony Mitchell, managing director of Cranfield, said: “We are forever reading exhausting reports that contradict one another, predominantly based on information sourced from positions of power and wealth painting an unrealistic picture of what is really happening out there. This is why we thought we would try and get a better understanding of how businesses are really coping at the moment  by speaking to the professionals working with businesses across all sectors day in, day out.”

Findings from the survey highlight optimism around the Midlands economy, with 60% of respondents positive that the economy of the Midlands is doing better than the rest of the UK. The positivity continued as more than half of respondents believe that the number of unemployed will decrease during 2013.

The Coventry and Warwickshire Chamber of Commerce has been advocating confidence as the key to regional growth for a long time, and the respondents of Cranfield’s survey confirmed this as 68.4% cited it as the biggest barrier to growth in the current situation. Angela Tellyn, of the Coventry and Warwickshire Chamber of Commerce, says: “Confidence is crucial and there have been more positive figures recently when it comes to jobs and growth. Of course, we do hear from members who are still finding conditions tough but the more confident businesses become, the more they are likely to invest and grow. That, in turn, has a positive effect on the rest of the economy.”

One respondent to Cranfield’s survey put forward his views on the current business economy “There is clearly a desire within the business community to move forward and activity levels appear to be up, although margins are tight. However there is still a lack of confidence for long term investment. HMRC reduces Capital Allowances and banks are very selective – they should be more innovative and supportive of businesses.”

Another respondent highlighted the effect of Zombie companies, quoting “Until poor businesses fail and asset values are allowed to fall as should happen in a “free” market, then good businesses will not be able to fully prosper and banks will remain unable to lend without tight restrictions due to the inherent risks of lending in what is still effectively a credit hyped, now government policy, maintained bubble.”

As a leading business recovery specialist, Cranfield has always been a proactive member of its local business community and offers solid expert advice to businesses. Tony Mitchell said: “I hope our findings help to paint a more realistic picture for businesses in the region. However, if they are still unsure about where their business is headed we urge that they seek advice earlier rather than later.”

Editors Notes:

Note to editors: Further quotes from respondents and full results available on request.

Tony Mitchell, Cranfield Business Recovery, Tel: 024 7655 3700, Email: Tony.mitchell@cranfieldbusinessrecovery.co.uk

or

Natalie Hunt, Bridge PR & Media Services Tel: 024 76 520025, Email: natalie@bridgepr.co.uk

Cranfield Business Recovery is a firm of insolvency practitioners which employs 16 staff in its Coventry office.  At present they are the number one insolvency practice in Coventry. It was set up in November 2001 to offer a professional service to people with corporate, business or personal financial problems and to work closely with professional advisers to assist their clients. The firm is led by licensed insolvency practitioner, Tony Mitchell. It aims to offer a bespoke service in a friendly environment in circumstances that are often difficult and stressful.

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