The number of registered company insolvencies in England and Wales fell by 17% in March compared to the same month last year, new figures published by the Insolvency Service have shown.

March saw 1,815 company insolvencies, down from 2,193 in 2023, while the latest figure was also similarly down 17% from February’s total this year (2,193).

Company insolvencies in March consisted of 261 compulsory liquidations, 1,437 creditors’ voluntary liquidations (CVLs), 108 administrations and nine company voluntary arrangements (CVAs).

One in 179 companies on the Companies House effective register (at a rate of 55.8 per 10,000 companies) entered insolvency between April 2023 and March 2024. This was an increase from the 53.5 per 10,000 companies that entered insolvency in the 12 months ending 31 March 2023.

Reacting to the figures, chairman of the executive board at Oxford Business College, Sarwar Khawaja, said there are “positive signs” in the latest insolvency data, but warned the economy is “not out of the woods yet”.

“Insolvencies may be down significantly month-on-month and year-on-year, but numbers remain high compared to pre-pandemic levels,” Khawaja commented. “The reductions suggest an easing of the economic pressure faced by businesses, including higher interest rates and stubbornly high inflation.”

While the insolvency rate has increased since the lows seen in 2020 and 2021, the Insolvency Service added that it remains much lower than the peak of 113.1 per 10,000 companies seen during the 2008/09 recession.

However, this is because the number of companies on the effective register has more than doubled over this period.

Khawaja continued: “While the current insolvency rate is well below the peaks seen during the 2008/09 recession, the business environment has changed significantly since then. The rise of the gig economy, e-commerce, and evolving consumer behaviour have reshaped the corporate landscape, making direct comparisons difficult.

“Businesses need to keep a close eye on their cash-flow, manage costs, and adapt to changing market conditions. Policymakers and industry bodies must stay vigilant, as a sustained rise in insolvencies could have ripple effects across the economy, impacting employment, supply chains, and consumer confidence.”

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