Harris Lipman News

Accountants’ Credit Crunch Survey Paints Gloomy Picture

19/12/2008

An on-line survey by London chartered accountants and insolvency practitioners Harris Lipman has found that two-thirds of respondents feel they are suffering as a result of the credit crunch.

When asked whether they expected the credit crunch to have an effect on them personally or their business in future, an overwhelming 92 per cent said yes.

Analysis of responses to the survey, which took place during November, found that 66 per cent felt the credit crunch had affected them personally. Where they ran a business, the same percentage felt their firm was suffering as a result of difficult economic conditions. Other findings from the survey at www.harris-lipman.co.uk included:

• 48 per cent of respondents said they were concerned about their investments
• 46 per cent said they were having to cut back on spending
• 38 per cent of business-owners said customers were taking longer to pay
• 36 per cent said it was reducing their business volume
• 26 per cent said they were finding credit harder to obtain.

Banks were held chiefly to blame for the current economic climate. A total of 76 per cent respondents held the banks and other financial institutions responsible although 42 per cent also blamed the government and 44 per cent the world economy.

Barry Lewis, senior partner at Harris Lipman, said: “Our survey has provided a worrying snapshot into the increasing impact of the credit crunch and demonstrates just how widely it is being felt. These results will be valuable in helping us to focus our advice and services where they will be most helpful in seeing our clients through this challenging time.”

For more information, contact Harris Lipman on 020 8446 9000.