Business debt 'will slow economic recovery' from coronavirus pandemic, IoD warns

The Institute of Directors (IoD) has warned that business debt will hinder the economic recovery from the coronavirus (COVID-19) unless steps are taken to make the burden more manageable.

The Institute of Directors (IoD) has warned that business debt will hinder the economic recovery from the coronavirus (COVID-19) unless steps are taken to make the burden more manageable.

The IoD polled 720 company directors and found that 51% believe that debt their company has taken on during the pandemic will have a negative impact on their recovery. 57% said that debt will hold back their investment plans for the next two years.

The business group is calling on the government, banks and businesses to work together in order to deal with the 'debt mountain' faced by UK firms. The IoD has proposed that small businesses should be able to convert government-backed loans into 'student loans' and make repayments once the business turns a profit.

'During the crisis, government loans have been a lifejacket for business, but they could become an anchor dragging back the recovery,' said Jonathan Geldart, Director General of the IoD.

'If we don't deal with the debt mountain businesses have had to take on because of coronavirus, the economy will take much longer to heal.'

ACCA
About our team

Brookwood Accountants is a firm of Chartered Certified Accountants. We aim to provide our clients with a cost effective accountancy solution which adds value to their business.

Learn more

Latest news
Contact Details

Please call:
01926 257 610

Brookwood Accountants Ltd, 158A Parade, Royal Leamington Spa, Warwickshire CV32 4AE

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help |

© 2020 Brookwood Accountants Ltd. All rights reserved. powered by totalSOLUTION

We use cookies on this website, you can find more information about cookies here.