Government figures revealed that British companies that declared bankruptcy in September recorded their highest number since March 2020.
Data from the Bankruptcy Service shows 1,446 company bankruptcies in England and Wales last month, up from 1,349 in August and 928 at the same time in 2020.
According to the Bank of England, higher borrowing during the pandemic is responsible for putting more businesses at risk.
Covid or Brexit?
She said: « The increase in debt – although moderate overall – likely led to increases in the number and size of the most vulnerable businesses.
« As the economy recovers and government support subsides, including restrictions on liquidating orders, business bankruptcies are expected to increase from historically low levels. »
Last month, it emerged that trade barriers related to Brexit had risen to £2.2 billion in UK business costs in the first half of this year.
An additional £600m in costs has been hit by British importers since January, according to HMRC data cited by HMRC. Watchman. The reason was identified as Brexit, because taxes were not required for EU imports when Britain was in the single market.
Michelle Dale, senior manager at accounting firm UHY Hacker Young, told the newspaper that British companies had not been given enough time and help to prepare for the costs of Brexit and paperwork – which means they are now struggling to remain profitable.
Hunters and farmers
Meanwhile, UK fisheries are facing losses of £300m, according to a report by the National Federation of Fishermen’s Organizations.
According to a Brexit balance sheet report, British fishing fleets will incur losses of £64 million or more each year, reaching £300 million by 2026.
It comes after the government claimed the fishing industry would benefit from an additional £148m by 2026 – but the report said the financial increase was likely to be unusable and therefore of little value.
« From a review of these results, the conclusion of the NFFO is that there are too few winners and too many losers, » said Barry Dias, CEO of the National Federation of Fishermen’s Organizations.
In August, it was revealed More than two-thirds of the UK population feel ‘left in the dark’ On the impact that the government’s post-Brexit trade deals will have.
While a series of deals have been struck with many countries, matching terms that were in place when Britain was in the EU, and new deals have also been signed, a survey found that Britons feel the government has not been transparent about what the deals entail.
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