The number of company insolvencies in the UK jumped 21% in November compared to the same month last year, new figures published by the Government have shown.

According to the Insolvency Service, there were 2,466 registered company insolvencies last month.

These figures present the numbers of creditors’ voluntary liquidations (CVLs), administrations, company voluntary arrangements (CVAs) and receivership appointments based on their registration date at Companies House, and therefore numbers reflect company insolvency registrations rather than insolvency procedure start dates. Compulsory liquidation data is sourced from the Insolvency Service and provides an accurate measure of the number of new cases each month.

Of the total number of insolvencies in November, the figures revealed there were 1,962 CVLs in November, which was 23% up on the same month last year.

A total of 359 were compulsory liquidations, which is 22% higher than November 2022, while there were 133 administrations, which was 1% lower than November last year. The figures also showed that 12 insolvencies were CVAs, with November seeing no receivership appointments.

Director at Cardano Advisory, Nick Agius, said the latest figures are a reminder of the “continued struggles UK corporates are facing” when it comes to manage rising costs.

“If you go back further to the pre-COVID economic environment of November 2019, there has been a 60% increase in the number of insolvencies,” Agius commented.

“We are clearly still seeing the delayed aftereffects of the economic impact that the pandemic caused, with the struggles faced by businesses compounded by inflation and interest rates. UK businesses are trying to juggle cash flow and debt obligations.”

Agius added: “It is clear that pressure on cash flows persists and wider economic performance is under strain as we saw earlier this week with the UK economy shrinking by 0.3% in October. Alongside the high interest rate environment we are in, these pressures are continuing to bite on businesses.

“Many businesses will be hoping for economic stabilisation as they head into 2024, particularly given the Bank of England’s decision yesterday to hold interest rates. While the high rates appear to be squeezing down inflation, we believe businesses will still have to contend with the current interest rate environment for much of next year.”

---