Insolvencies

As business leaders and politicians try and work out if we're coming out of recession or about to slide back in one thing is certain - there's been a huge rise in the number of insolvencies this year.

Personal insolvencies - bankruptcies and Individual Voluntary Agreements - both hit an all time high in Wales over the summer.

But the number of businesses going bust has been surprisingly low. Many in the industry think the figures aren't telling the real story and warn there's a massive wave of business liquidations about to break.

They argue that banks have been holding off pulling the plug on many businesses - because it would look bad after the Government bail-outs they've received and also because liquidating businesses isn't worth it when company assets are at an all time low.

Meanwhile the taxman has been giving businesses a lifeline over the past year allowing payment holidays for VAT and PAYE contributions. But advisors have noticed HMRC being less benevolent recently and the tax bill will have to be paid eventually.

So is it crunch time for many businesses across Wales? Are we about to see many of them go bust?