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LATEST NEWS & EVENTS Corporate insolvency rate falls  The UK corporate insolvency rate has dropped after the number of businesses filing for bankruptcy fell last year. Figures from the Insolvency Service reveal that the number of compulsory liquidations and creditors' voluntary liquidations fell to 16,045 in 2010, marking a 16 per cent drop from 2009. Commenting on the data, insolvency body R3 suggested that the drop in bankruptcies showed that the UK is experiencing an "atypical recession". President of R3 Steven Law said HM Revenue and Customs' Time to Pay scheme and the low rate of interest have helped to reduce the number of business insolvencies. He noted that businesses relying on consumer spending will see profits affected by the VAT hike as they either try to absorb the tax rise or pass it on to consumers, which will in turn affect demand. "Our research found that ten per cent of businesses describe themselves as reliant on public sector contracts and these businesses will be hit as the public sector cuts start to take effect this year," Mr Law added. The news comes as the personal insolvency rate in the UK actually increased slightly last year. Posted by Gaby Hamerton 
Related Articles: 8/5/2012 - More companies fail as personal insolvencies fall 23/4/2012 - Landlords and insurers unite behind insolvency law reform 19/4/2012 - Enterprise Act 'does not need radical overhaul' 13/4/2012 - Retail insolvency rate up 15% as rent payments bite 28/3/2012 - Business insolvencies on the rise More Insolvency & Restructuring News |
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