An alarming study published by the Office of National Statistics this week has concluded a very bleak outlook indeed for the UK economy.

The study entitled Coronavirus and the latest indicators for the UK economy and Society found that as many as one in seven businesses fear collapse within 3 months.

That means 14% our businesses could have just 12 weeks left before they find themselves insolvent.

7% of the businesses surveyed indicated they would be closing a site, either temporarily or permanently, in the next fortnight.

While chancellor Rishi Sunak announced this month that the government would extend the 80% furlough until at least March, this recent evidence from the ONS indicates we are likely to see a winter of rising unemployment.

The National Audit Office has already predicted UK businesses will default on bounce back loans to the tune of some £26bn.

UK Economy One of the World’s Hardest Hit

This latest analysis of the national economic situation sits alongside existing evidence which places the UK as the hardest of all major economies (from April to June 2020)

Rishi Sunak said these figures were due to the UK’s focus on services, hospitality and consumer spending. The OECD concluded that the UK’s largely service-based economy made it particularly hard hit by the government’s lockdown restrictions.

Responding to the OECD’s report, Rishi Sunak commented “The unprecedented action we’ve taken to provide lifelines that help people and businesses through the economic disruption will ensure our economic recovery is as strong and as swift as possible.”‘

Does your business need free debt advice?

Our mission is to help company directors find the best solutions to debt and insolvency. Talk to one of our insolvency team via live chat, email or telephone to get practical advice about the best way forward for your company.