CORONAVIRUS support measures have “deferred rather than deterred” the impact of the pandemic.
This is according to Berkshire trade body R3, which says the number of corporate insolvencies last year do not reflect the impact of the virus just yet.
In 2020, there were more than 12,500 corporate insolvencies across England and Wales.
This is more than a quarter less compared to 2019, which saw more than 17,200.
It is the lowest annual figure for more than a decade, but Garry Lee, chair of the R3 Southern and Thames Valley region, said that while last year’s figures are lower, the pandemic could still be pushing firms towards insolvency.
“The government’s Covid support measures and legislation are key drivers of these low insolvency numbers,” he said. “But they have deferred rather than deterred the full effects of the pandemic.
“It’s a question of when, not if, levels of corporate insolvency increase this year, but the timing will depend on when – and how – the government support ends.”
