The SME Grim Reaper continues to swing his devastating scythe, as the number of UK businesses forecasted to go bust by the end of the year exceeds figures from peak financial crisis in 2009.
Moreover, recent data from England and Wales in the three months to the end of September show a 10% increase in insolvencies, compared to last year.
The government’s Insolvency Service reports:
Between 1 July and 30 September 2023 (Q3 2023), there were 6,208 (seasonally adjusted) registered company insolvencies, comprising:
- 4,965 creditors’ voluntary liquidations (CVLs)
- 735 compulsory liquidations
- 466 administrations
- 41 company voluntary arrangements (CVAs)
- 1 receivership appointment
After seasonal adjustment, the number of company insolvencies in Q3 2023 was 2% lower than in Q2 2023, but 10% higher than in Q3 2022.
The last two quarters saw the highest quarterly insolvency numbers since Q2 2009 and the highest numbers of CVLs since the start of the series in 1960.
The numbers of compulsory liquidations and administrations increased to levels last seen before the coronavirus (COVID-19) pandemic.
One in 191 active companies (at a rate of 52.4 per 10,000 active companies) entered insolvent liquidation between 1 October 2022 and 30 September 2023.
This was an increase from the 46.9 per 10,000 active companies that entered liquidation in the 12 months ending 30 September 2022.
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