Public spending cuts have begun to threaten the viability of UK government suppliers, research has found. The number of insolvencies among public sector providers has leapt by 47 per cent in the past year, a report from accountancy firm Wilkins Kennedy has found.

Of businesses supplying health and social services, education and defence sectors, 168 became insolvent in the first six months of 2010 compared with 114 in the first half of 2009. Corporate insolvencies as a whole have dropped by 5 per cent in the same period, the study found.

“While the real cost-cutting this government has threatened has yet to take place we are already seeing a wide range of companies fail because of delayed contracts.”

Source and read more: Supplychain.com