Corporate Insolvencies Jump in the UK After Withdrawal of Covid Support

When the coronavirus swept the world, governments and businesses were left scratching their heads, wondering how exactly they were supposed to deal with it. A virus of this scale had not been seen in over a century and as such, knowing what the next steps should be certainly were difficult to get hold of. Organizations began to wonder how they were ever going to keep their business afloat through such economic hardships, whilst individuals wondered how they would fare through elongated periods of isolation.

The government became aware that as the virus gradually grew worse, they needed to step in to help businesses. Many organizations were able to utilize technology and the cloud and continue running their organization from the comfort of their own home. Many other businesses could not do this, and all trading had to cease immediately. Companies were naturally not going to be able to survive off such little income. Subsequently, plans were put in place to help businesses navigate such unprecedented times.

One of the measures put in place was the furlough scheme, which made it so businesses could receive help with paying their staff rather than making those staff redundant. With this, the government paid 80% of the business’s wages, meaning the business itself only had to make up the remaining 20%. A lot of employees agreed to take minor pay cuts throughout the pandemic so that organizations didn’t even need to contribute 20%; this was to ensure the business survived such an unprecedented period without too much financial hardship.

Get data of Corporate Insolvencies in the United Kingdom