Company insolvencies surge as pandemic takes its toll

Fresh appeal for SME supports to continue as two reports highlight worrying rate of business failure

The figures show a 45% increase in insolvencies to 371 companies in the first half of this year.

Renewed calls for the continuation of widespread supports for SMEs have been made amid fears of an escalation in company failure rates.

While the Government has moved to push into law new rescue legislation aimed at making it cheaper, easier, and faster for small companies to restructure if in trouble, there is rising concern that insolvency rates will increase when Covid supports begin to be phased out. The hospitality sector is a particular area of concern.