North East business owner/managers should be acting now to get ahead of the recent dramatic rises in fuel and energy costs if rising costs could threaten their business’s viability.
That’s the advice from Chris Ferguson, director of recovery and restructuring at RMT Accountants & Business Advisors in Gosforth, in response to the additional financial strain being placed on business finances by the conflict in the Middle East.
And he is reminding business owners that, by taking proactive steps to address any financial concerns, they can access a greater range of options for avoiding formal insolvency procedures and will have a better chance of getting their finances back onto an even keel.
Companies in the transport and manufacturing industries are being hit particularly hard by the impact of the conflict and the resulting sharp rise in energy and fuel costs, while the impact on levels of disposable income caused by rising domestic fuel bills is having repercussions for the already-struggling leisure and hospitality sectors.
Chris Ferguson, who is a licensed insolvency practitioner, says: “The last few months have been tough enough for many companies, with challenging trading conditions, rising staffing costs and increasing National Insurance contributions all having a significant impact on their finances.
“Recent global events have added even more pressure, leaving many North East business owners feeling stretched to breaking point..
“It’s essential for them to remember that there are options available that could go a long way towards safeguarding their operations and the jobs of their employees.
“The range of solutions that exist to help companies with financial problems is wider than it has ever been, with many options available that don’t involve going through a formal insolvency procedure.”
Recent industry research showed the number of North East firms experiencing significant and early stage distress reached 13,676 in the final quarter of 2025, up 7.9% on the previous quarter and 11.5% on the same period the year before.
Chris Ferguson continues: “As well as the immediate impact that businesses are seeing on their costs and cashflow, there’s the potential for a delayed second wave of pressure in the months ahead if the conflict drags on, especially as current energy contracts come to an end.
“More than ever, it’s vital that business owners maintain clear oversight of their day-to-day finances and take proactive steps to tackle any foreseeable financial problems before they escalate.”
RMT Accountants & Business Advisors is part of the Sumer Group, the UK’s fastest-growing accountancy firm, and provides a full range of financial and business advisory services through its specialist teams covering audit, accountancy, tax, medical and healthcare, corporate finance and restructuring.