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Quantitative easing (QE) increases the risk of corporate insolvency for many firms, but continues to be used by the Bank of England to try and kickstart the economy, says Dr Ros Altmann.

The director general of over-50s specialist Saga explains that QE has “decimated corporate pension funds”, leading some firms into business insolvency while others shore up their pension pots with money that was previously intended for expansion plans.

Overall, this leaves the injection of cash by the Bank of England as being more helpful to the banks than to the economy as a whole, she says.

“We must question whether QE has had the desired effect and in fact, through its impact on annuity rates and pension funds, whether QE may have actually damaged growth,” she warns.

Meanwhile, interest rates remain at an all-time low of just 0.5%, meaning companies with pension funds and other savings are unlikely to see any respite due to interest generated on their capital.

This means that, for some, there are few avenues to escape corporate insolvency when finances become particularly tight.

If you are concerned about the threat of business insolvency for your company, seeking insolvency advice promptly can keep the options open for as long as possible, giving your firm the best possible chance of survival.