The number of corporate insolvencies in England and Wales last month was 76% higher than before the pandemic.
Figures released by the Insolvency Service reveal there were 1,964 company insolvencies in December– 32% higher than the previous year and 76% higher than the 1,119 registered in December 2019.
Christina Fitzgerald, president of insolvency and restructuring trade body R3, said company directors are “very concerned about the effects of energy and staff costs, as well as fears about how the cost-of-living crisis will impact on their income this year.”
Insolvency numbers stayed low during the pandemic owing to the government’s £154bn package of financial support for businesses, as well as temporary measures that helped companies restructure and avoid entering administration.
The data also shows that there were 183 compulsory liquidations last month, which is more than three and a half times as many as there were in December 2021, and 8% higher than in December 2019. Creditors’ voluntary liquidations rose to 1,659 at the end of last year – 22% higher than in December 2021 and more than double the number in December 2019.