Record number of UK companies go bankrupt as Brexit trade hurdles rise

Photo: PA Media

According to government estimates, the number of UK businesses declaring bankruptcy in September reached its highest since March 2020.

According to the Insolvency Service, there were 1,446 firm insolvencies in England and Wales last month, up from 1,349 in August and 928 in 2020.

According to the Bank of England, higher borrowing during the epidemic is accountable for placing more businesses at risk.

Which is more important: Covid or Brexit?

"The increase in debt, while moderate in aggregate, has likely resulted in an increase in the number and scale of more vulnerable businesses," it stated.

"Business insolvencies are expected to rise from historically low levels as the economy recovers and government support, including restrictions on winding up orders, fades."

Last month, it was revealed that Brexit-related trade obstacles cost UK businesses £2.2 billion in the first half of this year.

According to HMRC data cited by The Guardian, British importers have faced an additional £600 million in fees since January. Because tariffs were unnecessary for EU imports when the UK was a single market member, Brexit has been highlighted as the root cause.

According to Michelle Dale, a senior manager at accountancy firm UHY Hacker Young, British firms have not been given enough time to prepare for Brexit costs and paperwork. As a result, they are now fighting to stay profitable.

Fishers and farmers are two types of people.

Meanwhile, according to a survey by the National Federation of Fisherman's Organizations, UK fisheries face losses of £300 million.

According to The Brexit Balance Sheet analysis, Britain's fishing fleets will lose £64 million or more per year by 2026, totaling £300 million.

The government announced that the fishing industry will receive an extra £148 million by 2026, but the analysis claims that the money will most likely not be used and hence is of little value.

"From reviewing these findings, the NFFO's conclusion is that there are very few winners and a great many losers," said Barrie Deas, chief executive of the National Federation of Fishermen's Organizations.

In August, it was found that more than two-thirds of the UK public are "in the dark" about the impact of the government's post-Brexit trade accords.

While a series of agreements have been reached with several nations, many of which are similar to those in place. At the same time, Britain was a member of the EU, as well as new arrangements. A poll indicated that British citizens believe the government has not been clear about the agreements.

According to UK farmers, the British public is being "blindfolded" on the deals, who warned earlier this summer.

Publish : 2021-10-17 11:47:00

Give Your Comments