2/3rds of SMEs are already trading at a low-severe risk of Insolvency says ONS
Two-thirds of all businesses across the UK currently trading have a “low to severe risk of insolvency”, according to the Office for National Statistics (ONS).
The latest Business Impact of Coronavirus Survey from the ONS found that 64% of businesses across all industries are at risk of insolvency, with 43% of companies running on less than six months’ cash reserves. The figure comes on top of the 14% of all UK businesses that have already paused trading under local lockdown restrictions.
9% of the entire UK workforce, and more than a quarter of the nation’s hospitality industry, were still on partial or full furlough at the beginning of the month, according to the ONS.
The Trade Union Congress (TUC), which represents more than 5.5 million workers across the UK, has warned the country will see a “tsunami” of job losses when the furlough scheme winds down on 31 October — in just 3 days’ time.
By John Mather from EMC & Associates Ltd., 1 month ago.