Thirty-seven businesses in Cheshire East area filed insolvency notices in first three months of lockdown, according to BBC Shared Data figures.<\/p>\n
And a further 25 filed similar notices in the Cheshire West and Chester authority area, the statistics show, a rise of 11 from the same March-June period in 2019.<\/p>\n
However, new business registrations continue to be strong in both areas.<\/p>\n
A total of 965 new businesses were registered in April-June period in Cheshire East, and another 831 in Cheshire West and Chester.<\/p>\n
The statistics have been compiled from studying registered office addresses as listed with Companies House.<\/p>\n
Nationally, the data shows fewer insolvency type notices had been advertised during lockdown than last year, including sectors that were largely shut down.<\/p>\n
But many industry experts have pointed to government support for companies as one reason for this, as well as changes in insolvency law.<\/p>\n
And they cautioned businesses face challenges coming out of lockdown ‘hibernation’ and the true impact is unlikely to appear for months as businesses adjust to social distancing and other challenges.<\/p>\n
Analysis shows around 5,000 companies have filed for insolvency since March, down compared with 6,500 last year, as government funding meant they went into effective hibernation.<\/p>\n
The drop follows a spike in March around the start of lockdown.<\/p>\n
Institute for Fiscal Studies economist Stuart Adam said: “Some firms may continue to have their activity constrained by social distancing for a considerable period.<\/p>\n
“Others may face weaker demand if the recession leads people to spend less, or if the broader crisis changes how we choose to live and spend our money.<\/p>\n
“And even if firms\u2019 future activities are not affected in these ways, debts built up during lockdown might make it harder to keep going.<\/p>\n
“The size of all of these effects is highly uncertain \u2013 but the uncertainty itself can put a brake on economic activity, especially for cash-strapped households and firms.<\/p>\n
“All of these problems might have been worse without the economic support the government has provided, imperfect though it is.<\/p>\n
“To the extent that shoring up the economy during the crisis prevents a much bigger cost over the coming years, it\u2019s money well spent \u2013 especially while low interest rates make it so cheap for the government to borrow.<\/p>\n
“Whether the current package of support will be the last word remains to be seen: it would not be a surprise to see the Chancellor come back with more as the picture becomes clearer.”<\/p>\n
A HM Treasury spokesperson said: “We\u2019ve outlined a three-point plan for supporting businesses through the crisis and spurring the UK\u2019s economic recovery.<\/p>\n
“The first stage of this was our \u00a3160 billion support package for business that included our job retention scheme, which has protected more than nine million jobs and has been extended until the end of October.<\/p>\n
“Earlier this month we announced the second stage of our plan which aims to support, protect, and create jobs across the UK.<\/p>\n
“It includes a 15 percent VAT cut for hospitality, leisure and retail, the Coronavirus Job Retention Scheme Bonus, and job creation through investment in greening homes and buildings.<\/p>\n
“As the economy re-opens, we will continue to look at how to adjust our support in a way that ensures people can get back to work, protecting both the UK economy and the livelihoods of people across the country.”<\/p>\n","protected":false},"excerpt":{"rendered":"
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