London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

We are facing a two-year recovery, according to corporate Britain

We are facing a two-year recovery, according to corporate Britain

According to a survey conducted by Kroll, the world’s premier provider of services and digital products related to governance, risk and transparency, business leaders believe that it will take longer than the government predicts for the UK to get out of lockdown and the economy to bounce back to its pre-pandemic level.

The figures are at odds with the Office for Budget Responsibility (OBR) the government’s Budget watchdog, which predicted the UK’s GDP will return to pre-crisis levels by the middle of 2022. The poll asked 400 senior executives how quickly they felt the economy would return to pre-pandemic levels, as well as how confident they felt about a recovery this year.

Key findings included:

* Almost three-quarters (72%) of respondents thought it would take between two to five years to see the economy return to the same level as 2019. Of those respondents, 61% stated it would take two years and a further 11% stated it would take up to five.

* That said the majority (51%) of the same sample felt that the UK would begin to see a recovery underway this year.

* A significant 32% was not confident the UK would see the green shoots of recovery at all in 2021.

* When asked about the biggest issues facing the UK economy, 40% identified unemployment and a further 39% highlighted the linked issue of corporate failures.

Matthew Ingram, Managing Director UK Restructuring, Kroll, stated: “The Office of Budget Responsibility is taking an upbeat view predicting an increase in UK GDP of 4% in 2021, followed by around 7% in 2022. On its assumptions GDP could well be back to its pre-COVID-19 level by mid-2022. However, our polling has identified a very different sentiment amongst those business leaders who are at the coalface. The confidence of the OBR is simply not being shared in the wider economy.”

The latest figures from the Insolvency Service report that corporate insolvencies fell by 9% to 686 in February 2021 compared to January’s figure of 754 and were 49% lower than February 2020’s figure of 1,348.

Looking at this at a granular level, in February 2021 when compared with the number of company insolvencies registered in February 2020, compulsory liquidations were 86% lower, Creditor Voluntary Liquidations 38% lower, Company Voluntary Agreements 68% lower and administrations 62% lower.

Ingram continued: “It sounds counter intuitive to the broader narrative on the impact the pandemic. But what we are seeing is the impact of an activist government supporting businesses across two fronts—financial support and the temporary suspension of pre-existing corporate insolvency and governance legislation. But corporate Britain does feel like its covered in sticking plasters right now and the confidence many business leaders are feeling as the economy finally opens up is being tempered with the legacy that the necessary government interventions will leave behind.

“VAT deferments now need repaying, loans need servicing, staff need to be bought back off furlough, and rent arrears need settling. Corporate Britain has been piling up the debt and while that may have seen many through the pandemic, it will be an enduring challenge for many businesses as they look to the future. Our polling supports this as business leaders are acutely aware of the twin threats of unemployment suppressing consumer demand, and financial pressures as they come off government support.”

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×