Company insolvencies rise by 40 percent in England and Wales

Company insolvencies in England and Wales jumped by 40 percent in the 12 months to May, according to data published by the UK government.

2,552 companies were declared insolvent last month, compared to 1,825 during the same period in 2022. 2,181 of these insolvencies were registered as creditors’ voluntary liquidations (CVLs), 189 as compulsory liquidations, 151 as administrations, and 31 as company voluntary arrangements (CVAs).

The government said the increase in compulsory liquidations was in part due to “an increase in winding-up petitions presented by HMRC.”

A separate study by professional services firm PwC found that companies with annual sales below 1 million pounds were most at risk of going under, while constriction and retail were the hardest-hit sectors.

If you run a small or medium-sized business in Greater Manchester and need advice on how to operate in a challenging economy, GC Business Growth Hub’s #HereForBusiness package provides practical guidance and expert advice on a range of topics to help you manage the increasing cost of doing business.

To this end, we are running a series of drop-in sessions across the region this week:

If you have any questions, get in touch now.

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#HereForBusiness is funded by the UK government through the UK Shared Prosperity Fund.