A LEADING bank has claimed that UK companies could be sitting on as much as £4.6bn in cash.
Investec claims the cash is held by just 26% over businesses with turnovers exceeding £1m because of cancelled or postponed development plans. The average sum being held is £86,000.
Most of the cash will be in business deposit accounts earning little interest, according to investec.
Linda McBain of Investec Bank said: “With the Bank of England base rate at 0.5%, many business deposit accounts are paying low returns, in many cases much less than 0.5%. Indeed, our research shows that 32.4% of business deposit accounts are paying 0.1% or less on balances of £50,000.9”