Dozens of UK companies going bankrupt every day

Forty five companies are going bankrupt every day as the credit crisis approaches its third anniversary, new figures show.The statistics, released the week after UK banks reported profits of more than £15 billion, were down by almost a fifth compared to the same time last year.

More than 4000 firms were forced into liquidation over the past three months, an increase of 0.5 per cent, according to the Insolvency Service.

The figures appear to show that many firms were still struggling through the effects of the recession. It has led to some calls for banks to lend more.

Despite the economy emerging from an 18-month recession and growing twice as fast as expected in the second quarter of this year, many fear the government’s austerity drive put that in jeopardy.

The broader economic picture suggests a bleak future for a large number of companies as they struggle to pay off their debts whilst employment prospects, especially in the public sector, continue to be uncertain.

The feeling among insolvency practitioners is that this is the lull before the storm.

The smaller first wave of more extreme cases may be behind us but the larger second wave of companies who are still in a perilous condition financially is now approaching.

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