It has been just over a year since we went into our first national lockdown and we all had to work, educate and stay at home to stop the spread of COVID-19. Business Rescue Expert, the insolvency experts, has collated and analysed data to compile a report of what happened to our country and its companies over the past year.
The “Year of Lockdowns” story shows the effects on various industries, regions, and businesses/employees.
- COVID-19 caused more economic damage to the UK than Napoleon, Hitler, and The Kaiser.
- Construction bore the brunt of insolvencies by industrial sector (with 1,634 insolvencies).
- This was closely followed by Hospitality (1,378) and Retail (1,355).
- One in three UK workers were furloughed and unemployment rose to a six-year high.
- £454.4 million in redundancy pay and other support benefits were paid out in 2020, which was the highest amount in ten years (and 31% increase from 2019).
- Businesses in Yorkshire and The Humber region were most likely to become insolvent (based on the Corporate Insolvency ratio – showing the likelihood of insolvency based on the numbers of active businesses in a region and the number of business insolvencies recorded there).
- Businesses in the North West and North East were the second and third regions most likely to become insolvent.
- The total number of corporate insolvencies FELL in 2020 and went down to their lowest recorded levels since 2007
Chris Horner, Insolvency Director with Business Rescue Expert said: “Ominously, even with restrictions being lifted and economic activity rising, 2021 will be a worse year for insolvencies in several industries than the year of lockdowns was,
“Government support in the form of backed loans, furloughs and the temporary ban on winding-up petitions and other creditors actions are all expected to end sometime in 2021.”
You can see the full study and further information from Business Rescue Expert here.