New report from the ONS shows almost 300,000 businesses failed in 2010
A newly published report from the Office of National Statistics has revealed almost 300,000 businesses were declared insolvent in 2010, a rise of 20,000 compared to 2009.
The business ‘death rate’ hit 12.9 per cent of all UK businesses, compared to 11.8 per cent the previous year. This was the second consecutive year when ‘deaths’ outnumbered ‘births’ - the origination of new companies - which fell by 0.4 per cent to 235,000.
The report also revealed less than half of businesses started in 2005 were still active five years later.
Martin Walmsley, head of debtor insurance at Lloyds TSB Commercial Finance, said: “The climate continues to be tough for businesses and I predict the 2011 figures, when issued, will be in a similar vein, when looking at the Insolvency Service statistics so far for this year.
“To ensure companies are in a strong position heading into 2012, it makes good business sense to implement a credit insurance policy such as Lloyds TSB Commercial Finance’s Debtor Insurance, which can safeguard a firm against the risks associated with late payment and debtor failure.”