There are a high proportion of zombie companies in the UK. The COVID-19 pandemic has created the perfect environment to create more.
The UK has had a zombie problem for some time now. Companies that simply exist, shambling onwards without ever turning a profit or contributing meaningfully to the economy. These zombie companies have played a significant role in keeping UK productivity low and its only getting worse.
According to a report by the conservative think tank Onward, between 1% and 4% of companies have been zombified since the start of the pandemic, bringing the total number in the UK to more than 20%.
The effect this could have is potentially huge. Onward predicts that if nothing is done to reduce the number of zombie companies …
Read the full article at: https://www.icaew.com/insights/viewpoints-on-the-news/2021/april-2021/business-rescue-are-zombie-companies-on-the-rise
