Lincolnshire business distress rises 4.2% year on year

The number of businesses in Lincolnshire experiencing ‘significant’ or early-stage financial was notably higher than a year ago, according to the latest Red Flag Alert research from financial and real estate advisory group BTG.

According to the Red Flag Alert data, published today (21 August), 1,807 businesses in Lincolnshire were experiencing significant financial distress as of 30 June 2026. This represented a 4.2% increase on the same point last year. Nationally, significant financial distress increased by 1.1% year-on-year.

Year on year, nine of the 22 sectors saw a reduction in significant financial distress in Lincolnshire.

The largest annual decreases were recorded in media (-25.7%), automotive (-21.9%) and general retail (-12%). Sectors recording the largest year-on-year increases included wholesale (+58.3%), manufacturing (+48.5%) and printing and packaging (+33.3%).

Gareth Rusling, who heads BTG’s Lincolnshire offices in Lincoln, Scunthorpe and Grimsby, said: “The year-on-year increase in significant distress shows that many businesses continue to face financial pressure. The sharp rise in financial distress throughout 2025 has not simply disappeared, and businesses are still having to manage tight margins, rising costs and uncertainty about future demand.

“Businesses may be holding their breath before making decisions on investment and expansion, as they wait for greater clarity on the direction of the economy and the impact of Andy Burnham’s new Government.

“While a cautious approach can help businesses preserve cash and maintain resilience in the short term, it can also mean that decisions which could support future growth are delayed.

“Businesses that keep a close focus on cashflow and their overall financial position, and seek advice early when challenges emerge, will be best placed to navigate the uncertainty ahead. Early advice can make a substantial difference in helping businesses identify their options and avoid a situation becoming more serious.”

BTG Red Flag Alert has monitored early and critical financial distress levels among UK businesses for over 20 years, using a range of legal, financial and trading indicators.

For more information, visit www.btguk.com