A winter of discontent?

The government’s strategy for keeping businesses out of insolvency appears to have worked in the short term but be aware of the months ahead.

The government acted swiftly to take steps to safeguard businesses and avoid a slew of companies being placed into insolvency processes during the harsh early months of the pandemic. 

As well as the availability of the furlough scheme and the business interruption loans, the introduction of the Corporate Insolvency and Governance Act in late June gave specific protection to companies struggling to pay their debts and a suspension of liability for wrongful trading for directors, although that came to an end in September.