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Figures show how much Dorset businesses have borrowed in Bounce Back Loans and CBils


Research has revealed how much Dorset businesses were offered in Covid loans
DORSET businesses have borrowed more than three quarters of a billion pounds under the government’s Covid loan schemes.
Research shows 19,347 offers totalling £762.9million were made to the county business under the Bounce Back Loan initiative or the Coronavirus Business Interruption Loans.
The first repayments on the earliest loans were due last month and there are warnings that many businesses may collapse while still owing money under the schemes.
The highest borrowing locally was in Bournemouth West, where 2,957 businesses were offered a total of £88.2m under the Bounce Back Loans Scheme and 180 businesses received £45.1m in Coronavirus Business Interruption Loans (CBils) – a total of £133.3m to 3,137 businesses, according to a study by insolvency company Business Rescue Expert. ....

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Let 'zombie' companies collapse to boost growth, says Mervyn King


Let zombie companies collapse to boost growth, says Mervyn King
Former Bank of England governor says there is an enormous prize if policymakers can encourage tectonic shifts in the economy
12 April 2021 • 6:47pm
Heavily indebted “zombie” companies must be allowed to collapse to help usher in a growth-boosting structural shift in Britain’s post-Covid economy, according to former Bank of England Governor Lord King.
Policymakers would be rewarded with the “enormous” prize of stronger growth rates and low inflation, Lord King said as he blamed a decade of ultra-low interest rates for encouraging zombie firms to stagger on. 
The former Governor, who led the Bank through the financial crisis, said the economy needs to have “a significant reallocation of resources” to healthier sectors and firms with the challenge facing officials worsened by Covid. ....

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Resolution Foundation Warns UK Government on Creating Zombie Firms, Conister Responds Saying BBLS and CBILS Kept Firms Alive


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Resolution Foundation Warns UK Government on Creating Zombie Firms, Conister Responds Saying BBLS and CBILS Kept Firms Alive
Earlier today, the
Resolution Foundation published a report called
On firm ground? The impact of Covid-19 on firms and what policymakers should do in response. The report seeks to assess the current state of corporates while setting out priorities for policymakers to allow enable firms to recover. The authors state that policymakers must first prevent viable businesses from failing in the coming months as the vaccine is distributed and then ensure that firms are in a position to rapidly recover. Last year, the Chancellor of the Exchequer announced a series of programs designed to support businesses during the unprecedented economic challenge of a global pandemic. Most of these programs involved government-backed lending by qualified financial services firms. ....

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