A total 23,872 company insolvencies were reported across England and Wales in 2024, new figures from the Insolvency Service have shown.

The figure was 5% down from 2023, which saw the highest annual number since 1993.

According to the figures, the fall in the total number of insolvencies was driven by an 8% decrease in the number of creditors’ voluntary liquidations (CVLs) compared to 2023. CVLs reached 18,840 in 2024, following the highest ever annual total in the time series in 2023, since records began in 1960.

However, compulsory liquidations were at their highest levels since 2014 with the 2024 annual number 14% up on 2023. Administrations in 2024 were also slightly higher than in 2023, by 2%, while the annual number of company voluntary arrangements (CVAs) increased by 9% over the same period. CVA numbers remained below levels seen before the COVID pandemic.

Partner at restructuring and insolvency firm PKF Littlejohn Advisory, Stephen Goderski, said: “A reduction in insolvencies is encouraging, but the real challenge is what lies ahead. With national insurance contributions set to rise in April, businesses will see their payroll costs increase, putting further strain on cash flow at a time when many are already stretched.

“The question is whether the Government’s economic strategy will provide the stability and support businesses and SMEs need or whether uncertainty will continue to dominate the landscape.”

The Insolvency Service’s figures also showed that the total number of company insolvencies in December reached 1,838. This was 6% lower than in November (1,962) and 14% lower than the same month in December 2023 (2,139).

The latest number of company insolvencies remained much higher compared to those seen both during the pandemic period and between 2014 and 2019.

“Larger businesses and small and medium-sized enterprises (SMEs) remain vulnerable in this environment,” Goderski added.

“Although some relief is coming, businesses are still waiting for clear signs of sustainable growth and improved trading conditions. If uncertainty lingers, there is still a risk that insolvencies could rise again in the months ahead.”

“Proactive measures, such as seeking professional advice and reassessing financial strategies early and often can significantly enhance the chances of long-term viability. For SMEs, this approach is vital to ensure their role as the backbone of the UK economy remains strong.”

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