Company insolvencies continue to fall in the first quarter of
2010
The number of troubled companies falling into insolvency has
dropped, with 783 being placed into administration in England and
Wales in the first quarter of 2010, according to statistics
released today by the Government's Insolvency Service.
"People will be relieved that there has been a
drop in the number of business failures in the first quarter of
this year. Unfortunately, we expect to see an increase in
administrations now that the general election is over," commented
Malcolm Shierson, Partner at Grant Thornton's Recovery and
Reorganisation practice.
"Whomever forms the next government, UK
economic growth will be hampered by projected reductions in public
spending and a likely increase in taxes. It is likely that lenders
will take a tougher stand on struggling enterprises, which may also
be squeezed as 'Time to Pay' Tax schemes are phased out."
The latest number of administrations represent
a fall of 7.8% on the previous quarter (849 in Q4 2009 and a
staggering fall of 40.3% against the same period in the previous
year (1,311 in Q1 2009).
Company liquidations in England and Wales also
dropped to 4,082 in Q1 2010. This figure reflects a fall of 8.4% on
the previous quarter (4,457 in Q4 2009) and a fall of 17.8% against
the same period in the previous year (4,964 in Q1 2009).
"The health of the UK economy is mainly
reflected in the number of administrations. Typically large
employers are placed in administration when they run into trouble,
whereas liquidations are more common among smaller enterprises,"
concluded Grant Thornton's Malcolm Shierson.
Ends
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