Blackpool-based Federation of Small Businesses says Government help needs to continue in a timely manner

Insolvency Service figures for the first quarter of 2020 showed that both individual and company insolvencies fell, and the number of individual bankruptcies rose. But the figures largely pre-date the Government lockdown.

The Enterprise Research Centre has warned of a “pincer movement” ahead with a surge in limited companies going bust mirrored by a fall in new firms setting up.

And the Insolvency Service warned the figures may have been affected by the fact that insolvency practitioners and courts were unable to process cases in the usual way at the end of March.

Chairman of the Blackpool-based Federation of Small Businesses,Mike Cherry, said: “These figures highlight the scale of the challenge that small businesses are facing.

"There is a huge package of support available to those who need it, and in most areas, that package is doing its job. The bounce back loan scheme which will go live on Monday, must have applications processed as promised within 24 hours.”