By the eve of the Covid-19 crisis in late 2019, corporate net borrowing stood at £443bn, 70% above the 2011 nadir. EY’s Item Club estimates that this will rise to around £493bn by the end of 2020.

Bank net lending to corporates increased from 2019’s £8.8bn to £43.2bn by August 2020. UK government support programmes for companies in lockdown underlie much of this increase. These schemes were a lifeline for many businesses, but the resulting debt must now be addressed before it becomes a millstone. 

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