Businesses kept afloat by government funding during the pandemic fear they will go insolvent coming out of lockdown.

Many companies have effectively been in ’hibernation’ – there have been fewer go under during the lockdown than in the same time period last year.

Analysis by the BBC’s shared data unit shows that around 5,000 companies in the UK have filed for insolvency since March, down from 6,500 in 2019.

Experts attribute this to the £160 billion in emergency support for businesses from Government, and changes to insolvency law which mean that if a company cannot pay its debt due to the coronavirus, its creditors cannot apply for it to be wound up until the end of September.

However in the South West, the pandemic seems to have taken a more immediate toll: in Cornwall, 25 companies were registered insolvent during the lockdown, as compared to five in the same period in 2019. In Devon ten were registered insolvent since March, compared to six last year.

Economic experts warn that the true impact across the country is unlikely to appear for months as businesses try to adjust to social distancing and other hurdles.

Economist Stuart Adam said that without intervention, the situation might have been worse, but businesses coming out of lockdown face multiple challenges.

Social distancing measures, reduced spending, larger debt and general market uncertainty could all have an impact, he said.

He said: ’Since many firms will undoubtedly shrink or go out of business and jobs will be lost – especially as the furlough scheme comes to an end – it will be vital over the coming months and years for others to start up or expand, to fill the gap and employ those left out of work.’

Companies working in information and communication have seen the largest increase in insolvencies.

People working in the events sector without a known date for when social distancing restrictions can be lifted, have said the sector is on its knees. 

Richard Millward has helped run major events but is now working as a driver for Waitrose.

He said the margins for festivals and concerts were too small for reduced capacity due to social distancing and the risk was some events simply would not return.

’Several companies that I know are looking at going into administration or have already closed down. It’s sad and also quite worrying.

’We’re going to lose an awful lot of the skill, the talent pool that we have. I think a lot of people are just trying to hang on for as long as possible.’

The lockdown has also seen 200,000 new businesses registered in the UK. The greatest proportion of these are in online or mail order retail, with management consultancy, lettings and real estate, service activities and business support, IT consultancy, home construction, freight and takeaway food also in the top ten types of business started.In Cornwall, 685 new businesses were registered between April and June, and in Plymouth, 315.