The business secretary has announced a review of “pre-pack” insolvency services which make it easy for people to walk away from debt.
Speaking at the LSE he notes that Britain has many zombie companies that are only able to continue in business because of low rates.
When the environment changes, we’re going to be faced with significant insolvencies
If that’s the case then I hope the government are getting ready with policy to wean businesses off of the teat of low rates. It’s ok pumping schemes like Funding for lending etc but if you know rates are going to only go one way you’d better have a plan ready or it will be a case of one step forward, two steps back.
The same can be said across the EU and the US who are also in a low rate position. Obviously the US has the biggest teat in the world. In fact it will be more like trying to wean crack addicts off the habit than a baby off a tit