More than 900,000 businesses are at risk of failing by April as a result of the COVID-19 pandemic, according to a new report by the London School of Economics (LSE).
The LSE has predicted a “major wave” of bankruptcies for UK firms, as a result of current business support programmes expiring at the end of March and April.
Around 15% of UK businesses are at “great risk” of imminent closure, with micro-businesses being particularly vulnerable, the organisation warned.
Authors of the report said the impact on jobs is “grim”, and is calling for further Government support to help businesses affected by the pandemic, without which such business closures could be over three times higher than Q1 of 2019.
Professor Van Reenen and Peter Lambert, authors of the report, said:
“Without further policy action, businesses face a cruel spring of bankruptcy.”
“The current policy trajectory must be altered in order to provide protection now and to map a path for post-pandemic prosperity.”
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