Campaigners hit out at Budget for failing to slay zombie firms

Tim Wallace
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ZOMBIE firms will continue to drag on growth after George Osborne turned down plans for a new task force to reform the sector, a lobby group claimed yesterday.

Firms who can just cope with their interest payments but have no chance of repaying their loans are tying up bank resources which could be reallocated to more productive firms, campaigners fear.

The Institute for Turnaround (IfT) had been in talks with the government proposing a zombie task force to go through banks’ books to identify which firms can be turned around, and which will never recover.

“This would be a simple, focused, cost-effective means of ensuring zombie companies get a fast track back to viability then onwards to growth and prosperity,” said IfT boss Christine Elliott.