Rise in financial distress for Shropshire businesses
The number of Shropshire businesses experiencing ‘significant' financial distress is on the rise, according to new data.
In the final quarter of 2025, the figure increased by 10.7 per cent year-on-year to 4,809, according to the latest Red Flag Alert report by financial services firm Begbies Traynor.
Across Shropshire, the number of businesses experiencing ‘significant' distress also rose annually in Shrewsbury by 5.6 per cent, Telford & Wrekin by 9.3 per cent and Oswestry by 51.4 per cent.
However, the number of businesses decreased slightly in Bridgnorth by 2.6 per cent and Ludlow 3.8 per cent.
The hardest hit industries across Shropshire continued to be construction with an increase of ten per cent, real estate and property by 25.5 per cent and support services, up by 14.9 per cent.
Nick West, a partner at Begbies Traynor, said: "Subdued spending and low confidence from consumers and businesses towards the end of the year have continued to impact Shropshire businesses.
"Many leaders across industries will no doubt be anxious about the year ahead as costs continue to rise for businesses and people continue to opt for saving instead of spending.
"The impact of shrinking consumer demand against a backdrop of high energy costs, rising minimum wage, persistent inflation and unemployment challenges is being particularly felt by smaller businesses which are unable to weather difficult conditions like larger groups can.
"There is also added pressure from HMRC calling in some of the billions in corporation tax, PAYE and VAT it is owed as a hangover from the pandemic. Unfortunately, this climate is producing a number of ‘zombie' businesses that will face closure if they aren't supported by backers with wealth or acquired.
"To drive growth, create and protect jobs and improve productivity in Shropshire, we need a healthy balance of small, medium and large businesses. Leaders across the Midlands must confront any distress early on to have the most options at their disposal."
The annual increase in ‘significant' distress has been felt across the wider Midlands with an 8.2 per cent increase, including 6.7 per cent in the West Midlands county and 6.2 per cent in Staffordshire.
Across the UK, the number of businesses experiencing ‘significant' financial distress increased by 11.3 per cent to 728,640 firms while ‘critical' distress surged annually by 43.8 per cent to 67,369.
