In UK most large scale enterprises are fearful of present economic scenario.

The largest companies of United Kingdom are presently holding onto a cash pile of £166bn, up by £42.2bn since 2008 when the economic crisis began.

There has been a sharp rise in cash and its equivalents over last five years, pointed out a research conducted by Capita Asset Services. The net cash value has also acquired a higher position over the same period. Though long term debt has increased by around 11%, almost £20bn of short term debt has been paid since 2008.

The gas and oil producers with 17 sectors that have already doubled its cash positions and 13 sectors that are seeing a decrease in cash positions account for almost one third of the cash piles.

The commercial director of Capita Asset Services, Justin Damer pointed out that firms re-engineered their balance sheets, thereby making a more defensive structure when the recession hit and paid off debt and amassed cash, diverting funds from procurements, dividends and business capital. However, they continue to stack cash even though the economy has improved. The business analysts claim that this move will prove them unpopular with the investors as they resent sitting on huge piles of cash while earning very low returns.