UK businesses which declared bankruptcy in September hit the highest number since March 2020, government figures have revealed.
Data from the Insolvency Service shows 1,446 firm insolvencies in England and Wales last month, up from 1,349 in August and 928 from the same time in 2020.
According to the Bank of England, higher borrowing during the pandemic is to blame for putting more businesses at risk.
Covid or Brexit?
It said: “The increase in debt – though moderate in aggregate – has likely led to increases in the number and scale of more vulnerable businesses.
“As the economy recovers and government support, including restrictions on winding up orders, falls away, business insolvencies are expected to increase from historically low levels.”
Last month, it emerged that Brexit-related trade barriers have risen to £2.2 billion in UK businesses costs in the first half of this year.
An additional £600 million in costs hit British importers since January according to HMRC data quoted by The Guardian. The cause has been identified as Brexit, because the taxes were not required for EU imports when the Britain was in the single market.
Michelle Dale, senior manager at accountancy firm UHY Hacker Young, told the newspaper that British businesses have not been given enough time and help to prepare for Brexit costs and paperwork – which means they are now struggling to remain profitable.
Fishermen and farmers
Meanwhile, UK fisheries are facing £300 million in losses, according to a report by the National Federation of Fisherman’s Organisations.
According to The Brexit Balance Sheet report, Britain’s fishing fleets will experience losses of £64 million or more every year, amounting to £300 million by 2026.
It comes after the government claimed the fishing industry will benefit from an extra £148 million by 2026 – but the report said the financial increase is most probably not going to be usable and is thus of little value.
Barrie Deas, chief executive of the National Federation of Fishermen’s Organisations said: “From reviewing these findings, the NFFO’s conclusion is that there are very few winners and a great many losers.”
In August, it was revealed that over two thirds of the UK public feel “left in the dark” about the impact that post-Brexit trade deals struck by the Government will have.
Whilst a series of deals with several countries have been made, matching terms which were in place when Britain was in the EU, and new deals have also been signed, a survey found Brits feel the government has not been transparent about what the agreements involve.