Uk business confidence has increased – but the removal of furlough, possible new variants and localised infection spikes pose risks

The number of UK firms at risk of bankruptcy has more than halved in the last six months, while only 6% of all registered businesses say they are at risk – the lowest since September 2020. However, Peter Lambert, Apolline Marion, and John Van Reenen (LSE) write that the removal of government support, possible new variants, and the ever-present risk of localised spikes in infections could make the rest of 2021 a quite volatile period.