New figures show the impact of the coronavirus pandemic on West Lindsey's economy

As the Government begins to taper off its Covid-19 support for businesses across the country, West Lindsey saw an increase in companies going into liquidation.
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New figures compiled by the BBC show five businesses registered in West Lindsey gave notice of insolvency from March 24 to June 30.

Over the same period last year, there were three West Lindsey businesses which filed for liquidation.

On the other hand, 103 new businesses were registered in the borough in the first three months of lockdown.

Figures compiled by the BBC show how many businesses gave notice of insolvency from March 24 to June 30Figures compiled by the BBC show how many businesses gave notice of insolvency from March 24 to June 30
Figures compiled by the BBC show how many businesses gave notice of insolvency from March 24 to June 30

Stuart Adam, an economist at the Institute for Fiscal Studies, said: “There will be new business opportunities, created both by changes in consumer demand and by the various government support schemes.

"Since many firms will undoubtedly shrink or go out of business and jobs will be lost – especially as the furlough scheme comes to an end – it will be vital over the coming months and years for others to start up or expand, to fill the gap and employ those left out of work.

"Whether the current package of support will be the last word remains to be seen.”

Nationally, between at least 5,699 businesses are known to have given notice of insolvency over the same three months, compared with 7,248 for that part of 2019.

Information and communication appear to have been the hardest hit sectors so far, with 999 insolvencies – a 46.3 per cent increase on 2019.

Around 180,000 companies were registered in the UK from April to June, most commonly in online and mail order retail.

The Treasury has provided around £160billion in support for businesses so far, including furlough payments, loans, business rate relief, tax deferrals, and top-up grants.

However, there have also been legal changes which mean that if a company cannot pay its debts due to coronavirus, its creditors cannot apply for it to be wound up until the end of September.

A Treasury spokesman said: “We’ve outlined a three point plan for supporting businesses through the crisis and spurring the UK’s economic recovery.

"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.”

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