Public sector supplier insolvencies on the up

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Gina Dyer
Deputy Editor
Sift Media
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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.

This is according to figures from accountancy firm Wilkins Kennedy, which says the government's new cost cutting measures are creating corporate failures and job losses.

Businesses that have suffered so far as a result of public sector cuts

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