One in ten businesses at risk of insolvency

24th August 2020

The figure is revealed in the latest business impact of coronavirus survey from the Office for National Statistics (ONS) which shows 10 per cent said their enterprise is at ‘moderate risk of insolvency’ and one per cent put the risk at ‘severe’.

The survey a found that 12 per cent of the workforce remain on furlough leave, with 67 per cent of furloughed employees receiving top-ups to their pay.

Almost a quarter, 23 per cent, said turnover has decreased by up to 20 per cent, rising to 50 per cent among 17 per cent of respondents.

However, the data, taken from the Business Impact of Coronavirus Survey (BICS), showed that almost four in five businesses (78%) were at ‘low’ or ‘no’ risk of insolvency.

Commenting on the figures, ONS Senior Statistician Chloe Gibbs said “Despite recent economic news, it is encouraging to see that four in five businesses say they are at no or low risk of going bust.”

“Road traffic data show that the number of car journeys is returning back to normal levels as people venture out to shops and travel to work.”

Over half of currently trading businesses reported that their turnover had decreased below what is normally expected for this time of year
Percentage of businesses currently trading, UK, 27 July to 9 August 2020
Turnover has increased by more than 50% <1%
Turnover has increased between 20% and 50% 3%
Turnover has increased by up to 20% 7%
Turnover has not been affected 32%
Turnover has decreased by up to 20% 23%
Turnover has decreased between 20% and 50% 17%
Turnover has decreased by more than 50% 11%
Not sure 6%