Covid lockdowns helped to destroy 389,000 businesses in the last 12 months leaving offices empty and shops shut

Pic: People Management

Covid lockdowns helped to destroy 389,000 businesses in the last 12 months leaving offices empty and shops shut 

The Department for Business, Energy & Industrial Strategy has released figures showing the number of private sector firms fell by 389,000 with the majority being sole traders.

ICSM charts businesses in trouble to help their members avoid companies that may go bust every month. The records reveal that construction, mining and retail have been hit in particular with the utilities seeing a 26% cut in businesses.

Another factor is that of the sole trader. Vast numbers – around 75% of the businesses that closed last year – were one person operations. Either owner drivers, consultants in all sectors or one man businesses that relied on a small number of clients who stopped trading.

Northern Ireland has seen 17% of all businesses cease trading in the last 12 months with the Northern Ireland protocol not helping with the Brexit trade deal being a huge factor. Wales has so far been the least affected by the pandemic in terms of business failures.

One of the biggest sectors to see an end to trading were unregistered businesses which are made up of people such as freelancers and consultants. The Government’s hand outs to businesses largely passed freelancers by as they failed to tick the boxes required for payment. Self-employed actors, designers, models, artists, musicians, photographers and stylists are some of those who fell between the cracks of the Government’s offers.

About ICSM Credit

ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.

For details about ICSM Credit call 0844 854 1850 or visit the website or email Ian at on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

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