Britain will be engulfed by a wave of insolvencies once government furlough schemes come to an end, business rescue specialists Begbies Traynor is warning.
“There is very significant distress out there, there is a bow wave of problems,” Begbies Traynor chairman Ric Traynor told the London Evening Standard.
He said that once Chancellor Rishi Sunak pulls back on support, wave of business failures will crash on to the economy, with tens of thousands of firms going under.
“There are plenty of companies that are just avoiding insolvency to claim furlough money to protect staff,” he said. “Once furlough ends they will have to go down the insolvency root.”
The recession will be at least as bad as the 2008/2009 financial crash, the company said.