New Hampshire Trust Bank Report Shows UK Businesses Clutch Their Cash Ahead of Brexit

LONDON, Oct. 3, 2019 /PRNewswire/ -- In its third annual SME Savings Tracker of over 500 UK businesses, Hampshire Trust Bank (HTB) has found that in the current climate of Brexit uncertainty, cash is most definitely king as UK Business Savings accounts take a dip and cash is kept close at hand ahead of 31^st October.

Business savings balances have continued to decline over the last two years as SMEs look to pay down loans and invest in the future amid Brexit uncertainty. On average, UK SMEs have £429,000 in their business savings account. However, in contrast to the 2017 data, the amount held in business current accounts is up with an average balance of £726,000, a staggering 78% increase, reflecting a desire to have better cash balances with a large amount of economic uncertainty.

There has been a rise in concerns and uncertainty impacting the intention to increase saving balances; which is likely due to the uncertainties surrounding Brexit. Other key findings include:

• 54% of SMEs are concerned about interest rates on borrowing increasing
• 43% are concerned around the uncertainty of whether borrowing facilities will continue
• For every £1 held in savings, there is another £1.69 held in a current account, a 60 pence increase on 2017
• 37% specifically raised an issue about the impact of Brexit on the short-term economic outlook.

Stuart Hulme, Director of Savings and Marketing at HTB said: "SMEs fuel the British economy, so it is important that they are supported. This research builds on that communication and identifies some of the wider market trends and recent developments that may impact SMEs.

"At HTB we prioritise relationships, our specialist teams are in regular communication with customers to gain an understanding of their requirements so we can best serve them, which, in turn, will support UK economic growth. Our range of award-winning business and personal savings accounts are a great alternative to keeping cash in a current account. Offering consistently great rates, we offer fixed and variable rate savings accounts to give customers a range of options to best suit their savings ambitions. And because we are a UK bank supporting UK businesses, you can be sure that your money is helping to boost the British economy."

To download the full report please click here

Read more information on Hampshire Trust Bank's Business Savings division here

Notes to editors

Hampshire Trust Bank (HTB) is a specialist bank, staffed by experts focused on helping UK businesses realise their ambitions. Our dedicated Specialist Business Finance, Development Finance and Specialist Mortgages divisions ensure that businesses receive the outstanding service, lasting relationships, integrity and expertise they need to prosper. We also provide savings accounts to individuals and businesses and since we lend only to businesses, our savers can be sure their money will be used to boost the British economy. The bank is authorised by the Prudential Regulation Authority and regulated by the Prudential Regulation Authority and the Financial Conduct Authority.

For more information, please visit our website: www.htb.co.uk

For additional information or to arrange an interview, please contact:
Emily Murphy
Communications Manager
Hampshire Trust Bank
Tel: +44(0)20-78623050
Email: emily.murphy@htb.co.uk

Related Links

http://www.htb.co.uk