Study shows 135 firms went into administration in April

A study by KPMG of notices in The Gazette showed 61 companies fell into administration during April, down from 91 a year earlier.

It also marks a 55 per cent tumble on the month before, with 135 firms going into administration.

The steep drop comes after the Government launched its mammoth job retention scheme that has seen millions of people furloughed on 80 per cent pay, as well as a raft of loan and finance support schemes.

KPMG said the Government action has given firms the headroom needed to survive the initial hit of the Covid-19 pandemic and lockdown.

But it warned that companies will need to tackle an even bigger hurdle over the recovery phase when the Government weens the economy off its support.

It comes after the Bank of England warned the UK economy was set to plunge by 14 per cent this year in the biggest annual fall on record, with the recovery expected to take more than a year after lockdown begins to lift.

KPMG cautioned firms against scaling back up too much and too soon amid uncertainties over consumer confidence and the costs of implementing social distancing.