UK business insolvencies highest in September
September registered the highest number of business insolvencies since March 2020, reported the BBC.
The number of companies going bust increased from 1,349 in August to 1,446 the next month. Compared with the same month last year, in September 2021 56 per cent more firms shut down, including energy providers People’s Energy and Igloo Energy.
Researchers predicted on Monday 11 October that business insolvencies will continue to hit the UK before the end of 2022, as the government cuts down on Covid financial support.
While 18,900 companies were saved from insolvency in 2020, researchers at insurance company Euler Hermes expect 37,000 business to go bust before 2023.
Euler Hermes’s head of sector and insolvency Maxime Lemerle told City PM that “massive state intervention prevented one out of two insolvencies in Western Europe and one out of three in the US in 2020.”
In 2022, the company expects a 15 per cent rebound, with recovery remaining uneven across Europe. The UK hit harder than some continental countries, including Germany and France, but will perform better than others, including Italy.