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
About Gina Dyer
I've been a journalist for four years, writing on a wide variety of topics from business and finance to travel, culture and celebrities. I began my career as an editorial assistant for Palladian Publications, a B2B publisher specialising in technical magazines for professionals in primary industries. I later moved into consumer magazines as a staff writer for French Magazine, a monthly travel publication aimed at Francophiles, and was part of the launch team for The Traveller in France, a quarterly magazine produced for the French tourist board. I was also a regular contributor to online travel portal Homesworldwide.co.uk, and later worked with customer publishers Future Plus as a freelance production editor, before joining Sift Media in January 2009. I am currently Deputy Editor of AccountingWEB.co.uk.