Insolvencies in April rose to 2,177, an 18% increase from 1,838 cases in March and a similar year-on-year rise from April 2023. This surge, influenced by high borrowing rates and persistent inflation, was particularly severe in the construction sector, although it still fell short of the levels seen during the 2008/09 financial crisis. Notably, the number of companies registered with Companies House has doubled since then.
The breakdown of April's figures includes 1,715 creditors' voluntary liquidations (CVLs), 300 compulsory liquidations, 144 administrations, and 18 company voluntary arrangements (CVAs), with CVAs experiencing a 50% increase compared to the previous year.
Overall, insolvencies have reached their highest since 2013, with 57 per 10,000 companies failing in 2023/24, compared to a peak of 113.1 during the recession of 2008-09.
After declining during 2020/21, insolvency rates climbed sharply in 2022, increasing by 8,000. The hospitality sector, along with vehicle sales and repair businesses, continued to report high insolvency rates.
Throughout the last year, the construction sector recorded the highest number of insolvencies, totalling 4,273 cases, influenced by the financial year-end factors affecting business closure decisions.
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