Expect an increase in business insolvencies

A lawyer has warned of an uptick in commercial insolvencies following survey results from the Bank of England showing an increase in small company defaults in the first quarter of this year, a trend expected to continue into Q2. The bank also reported a “significant” drop in demand for lending by small business. Michael Mulligan, partner at Kingsley Napley, responded: “There will inevitably be an increase in insolvencies and commercial disputes in coming months as a result, particularly as temporary insolvency law measures and fiscal support are gradually phased out.”