The UK will be the first large European economy to reach pre-pandemic levels of corporate insolvencies.
Business insolvencies will rise by 37% this year, Allianz Trade, a credit insurer, has predicted. It cited as the main causes the withdrawal of Covid support schemes, rising commodity prices, supply chain problems, the fallout from Russia’s invasion of Ukraine and the “lagging effects” of Brexit.
Allianz said there had been a “massive bounce back” in corporate failures in the UK at the end of last year and the start of this year, particularly in sectors such as utilities, construction and business services.
