Surge in insolvencies
Insolvencies in the health and social care sector are up by 49% in the first half of this year following council spending cuts.
The latest figures, reported in Community Care magazine, show that health and social care is one of the areas worst hit by public spending cuts. Insolvencies in defence and education rose by 71% and 39% respectively.
Figures compiled by accountancy firm Wilkins Kennedy showed that, while overall insolvencies in the UK fell by 5%, 106 health and social care providers went bust in the first six months of 2010 compared with 71 in the same period of 2009.
“While the real cost-cutting that this government has threatened has yet to take place we are already seeing a wide range of companies fail because of delayed contracts,” said Wilkins Kennedy director Anthony Cork, who said he expected the spending review to bring further pain for providers.