CORPORATE insolvencies are nearly 50% lower than this time last year, but a local trade body says do not be fooled by the statistics.
According to the Government’s report for November, personal insolvencies in England and Wales fell to 9,319, dropping by 22% when compared to November last year.
And corporate insolvencies have fallen from more than 1,500 to 889, decreasing by 41%.
But Garry Lee, chairman of R3 in the Southern and Thames Valley region, says the latest statistics fail to reflect the state of the economy.
“Businesses and individuals across Berkshire have been affected by Covid-19 and the only reason this hasn’t shown up in the insolvency statistics yet is because of the extensive support the government has provided,” he said.
And he warns that without that support, which includes the furlough scheme and the temporary ban on corporate evictions, the picture would be much more grave.
“The economy is still nearly 8% smaller than it was in February,” he added.
“Unemployment has increased and a number of big brands have entered insolvency processes.”
Now, Mr Lee is calling on businesses to access help as soon as possible if they need it.
“The earlier they seek advice, the more options they have to resolve their situation and the more time they have to make a considered decision about how they move forward,” he said.
