Public sector supplier insolvencies on the up

Government spending cuts are having a knock-on effect on the private sector, with an increase in the number of supplier businesses going bust.

Insolvencies among businesses that supply goods and services to the public sector leapt up 47% in the last year, with 168 businesses in the health and social services, education and defence sectors going bust in the first half of this year, compared with 114 in the same period in 2009.

Corporate insolvencies as a whole fell by 5% over the same period.

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