Deloitte: UK plcs sitting on £64bn cash pile

Deloitte: UK plcs sitting on £64bn cash pile

Excess working capital could pay the government's debt interest payments for the next 18 months

UK PLCS are sitting on £64bn of excess working capital – the amount of money a company requires to fund its day-to-day operations – according to Deloitte.

According to the research, excess capital is up from £61bn in 2010 and £59bn in 2009.

The report, Working Capital: The £64 billion question, found that companies are delaying payments to suppliers in order to help fund their working capital. On average, suppliers were being paid a week later in 2011 than two years earlier.

Andrew Harris, partner in Deloitte’s advisory development group, said companies’ cash piles would be “more than enough to pay the UK government’s debt interest payments for the next 18 months”.

“As the UK economy has technically entered a recession, cash and its effective use will continue to remain high on the corporate agenda,” Harris said.

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

2y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

2y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

2y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

2y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource