The number of company insolvencies in England and Wales fell by 10% in October to 1,747, new figures published by the Insolvency Service have shown.

October’s total was down from 1,950 in September, and 24% lower than October last year when there were 2,293 insolvencies.

However, the Insolvency Service warned that despite representing a recent fall, the latest number of company insolvencies remained much higher than those seen both during the COVID-19 pandemic and in the period between 2014 and 2019.

Company insolvencies in October consisted of 188 compulsory liquidations, 1,445 creditors’ voluntary liquidations (CVLs), 100 administrations and 12 company voluntary arrangements (CVAs). The figures showed that all types of company insolvency, apart from receivership appointments, were lower than in September.

Partner in the restructuring and recovery team at Evelyn Partners, Mark Ford, said: “Although the latest data shows a dip in the number of company insolvencies compared to last month and the same month last year, we are not out of the woods yet – these numbers are still high based from a historical perspective and monthly figures can be volatile.

“Many businesses remain in a perilous position following a long period of high borrowing costs, high inflation and consumers tightening their purse strings. Businesses aren’t always able to pass on the full extent of cost increases and this has left many saddled with debt. For some it is only time before they run out of cash and cease trading.”

Ford added that the Chancellor’s recent Budget announcements were likely to “threaten” wage rises for employees and warned that “numerous” business leaders had also suggested they may be forced to cut jobs given increases in their wage bills.

“Companies that are facing difficulties will maximise their chances of rescuing their business and saving jobs if they act sooner, rather than later,” Ford said. “Effective management of cash should remain a priority for businesses.”

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