BUSINESSES across the city are being warned against developing a false sense of security after insolvencies fell to their lowest quarterly total on record.

R3, the insolvency and restructing trade body, say Government support has delayed rather than prevented financial pain of the pandemic.

The caution comes after latest figures for England and Wales showed that there were 2,384 corporate insolvencies in the first three months of 2021 – the lowest quarterly total on record.

WATCH: Police van allegedly 'being held up' by LTN

This is a fall of 21.9 per cent compared to the fourth quarter of 2020 when there were 3,053 insolvencies in October, November and December.

It is also a drop of 38.3 per cent compared to first quarter of 2020 when there were 3,863 insolvencies.

Garry Lee, chair of R3’s Thames Valley region said: “The quarterly fall in corporate insolvencies has been driven by a drop in all corporate insolvency processes.

"However, the increase in corporate insolvencies between February and March of this year, suggests corporate insolvencies may now be on the rise.

“It’s clear Government’s support measures are still helping to keep businesses going, but they have pushed back rather than prevented the financial pain of the pandemic from translating into a sharp, sustained increase in corporate insolvencies.”

Read here: School continues fight to have cafeteria built in former Thai Orchid

R3 is now urging businesses to:

• Keep a careful eye on their cashflow levels to ensure they don’t fall into the trap of over-trading

• Have a plan for reopening in a way that’s sustainable

• Consider how they will manage when the Government support measures end