INTEREST in the World Cup could help make or break some businesses in the coming weeks, an expert has said, with the football tournament coinciding with festive trading.

Recent figures show the number of corporate insolvencies in the UK rose 15.7 per cent between September and October, to 1,948.

The figure was 38.2 per cent higher than in the same month in 2021.

Garry Lee, chair of the restructuring and insolvency trade body R3 in Dorset and Hampshire, said: “The current outlook is tough for many businesses as costs and interest rates rise and consumer confidence remains low.

“Worries about the price of food and fuel as winter approaches means many people are saving their money ahead of their bills coming in and simply aren’t spending – and a range of businesses, including household names, are struggling as a result.

“On top of this, business owners in Dorset and Hampshire are worried about the economy, the prospect of an imminent and prolonged recession, and where they’ll find the money to meet employees’ requests for increased pay as their own costs of living increase.”

Mr Lee, who is an associate director in the recovery and restructuring services department in the Southampton office of professional services group Evelyn Partners, added: “The unseasonal World Cup has also added a layer of uncertainty to the Christmas trading period.

“It may be that consumers wait until after the tournament finishes to prepare for Christmas or combine their football and festive spending. And, of course, much will depend on how far our home nations progress.

“The jury is still out on whether there will be the traditional boom that many businesses are hoping for, particularly in hospitality, catering and retail, or whether disappointing sales over the festive period will lead to businesses seeking advice and/or turning to an insolvency process to resolve their financial issues.”

According to the Bank of England, a typical household in the UK spends slightly more than £2,500 in a month but this increases by nearly £740 in December.

The men’s football World Cup got under way in Qatar at the weekend and runs until December 18. Intelligence provider GlobalData, in a report with VoucherCodes, has estimated that the tournament could bring a £2billion boost to the UK economy.

READ MORE: Almost 28,000 Britons enter insolvency as inflation hits

October’s figures also show personal insolvencies rising 4.9 per cent month-on-month to 10,514, which was 8.6 per cent higher than the same month in 2021.

The increase was driven by a rise in debt relief orders and individual voluntary arrangements.

Mr Lee said: “We urge any individual, business owner or director in Dorset and Hampshire who is worried about their financial situation to seek advice as soon as possible from a qualified and regulated professional.

“Talking about your money worries is incredibly hard but doing so while your worries are fresh typically gives you more options, more time to make a decision, and results in a better outcome than if you’d waited until the problem worsened.”