When a service provided by the government for Britain’s self-employed people reports a doubling in its client base, the news tends to be trumpeted.
But both government and businesses will shudder to learn that today the service booming by 50% is a helpline for one-person companies struggling to pay their debts.
In fact, callers to Business Debtline have increased in volume by 63 per cent in the first six months of this year, compared with the same period in 2007.
Figures for the helpline, set up free of charge in 1992, show that the number of cases spiked in January, when 2,100 people called, the busiest month since records began.
Last year, the service helped more than 15,000 callers – a figure that will easily be surpassed in 2008 thanks to the tightening grip of the credit crunch, as Paul Mullins, chief executive, hinted.
He added: “Many businesses are feeling the effects of the credit crunch and the slowdown in the economy as households up and down the country start to reduce their spending.”
Positively, a recent client survey found that 70 per cent felt more in control of their finances and less likely to get into problems in the future as a result of calling the service (on 0800 197 6026).
Oct 3, 2008
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