Ranked: London constituencies have highest demand for Covid borrowing in UK
London constituencies make up the top four UK regions which have seen the highest demand for Covid support loans, according to a new study.
Business Rescue Expert collated the amount each devolved UK constituency has borrowed under the Bounce Back Loan Scheme (BBLS) and the Coronavirus Business Interruption Loan Scheme (CBILS).
The City tops the table
The City of London and Westminster businesses dominate the number of loans taken out, with a total of 18,369 loans valued at more than £1.5bn.
Holborn and St Pancras came in at second on the UK list, with 10,767 loans worth £635m.
Hackney South and Shoreditch was third, with 9,604 loans valued at £425m, while Islington South and Finsbury came fourth, borrowing 7,794 loans worth £419m.
Manchester Central is only the only authority outside of London in the top five highest borrowing areas of the UK.
| Rank | Constituency | Number of Loans Offered (CBILS) | Value of Loans Offered | Number of Loans Offered (BBLS) | Value of Loans Offered | Number of Loans Offered (Total) | Value of Loans Offered |
| 1 | Cities of London and Westminster | 2,247 | £948m | 16,122 | £633m | 18,369 | £1.5bn |
| 2 | Holborn and St Pancras | 685 | £280m | 10,082 | £354m | 10,767 | £635m |
| 3 | Hackney South and Shoreditch | 419 | £117m | 9,185 | £308m | 9,604 | £425m |
| 4 | Islington South and Finsbury | 473 | £172m | 7,321 | £247m | 7,794 | £419m |
| 5 | Manchester Central | 420 | £132m | 5,608 | £198m | 6,028 | £330m |
Businesses at risk
According to the report, 41 per cent of small businesses have entered liquidation this year with an outstanding bounce back loan balance of £37,350.
It comes after a recent survey showed that 40 per cent of small business could be at risk of closure when repayments of the schemes start this month.
“After nearly two years of consistent decline, company insolvency figures are starting to rise once more and as support measures are removed later in the year, we’d only expect this trend to gather pace,” said Chris Horner, insolvency director at Business Rescue Expert.
“It won’t happen at a uniform rate across the country, it will affect some areas more quickly and deeply than others.”