In the latest monthly insolvency statistics for November 2023, the United Kingdom witnessed a notable surge in registered company insolvencies, reaching 2,466 - an alarming 21% increase from the same month in 2022.
This surge surpassed levels observed during the period of Government support measures amid the pandemic, and notably exceeded pre-pandemic statistics.
Breaking down the company insolvencies, the data revealed 359 compulsory liquidations, 1,962 creditors' voluntary liquidations (CVLs), 133 administrations, and 12 company voluntary arrangements (CVAs).
The upswing in insolvencies was primarily propelled by CVLs and compulsory liquidations, with administration numbers holding steady, remaining slightly below 2019 levels.
Conversely, for individuals, the trend painted a different picture, with total insolvencies in November 2023 amounting to 8,243 - a 21% decrease from November 2022, which recorded 10,478 insolvencies.
Individual insolvencies comprised 661 bankruptcies, 3,290 debt relief orders (DROs), and 4,292 individual voluntary arrangements (IVAs).
The decline in individual insolvencies was chiefly attributed to a significant 44% drop in the number of IVAs.
Nicky Fisher, president of R3, the UK's insolvency and restructuring trade body, said:
"Since the spring of 2020, firms have had to contend with the pandemic, the end of the Government support measures, rising inflation, the cost of living crisis, and supply chain issues - with no time to draw breath or recover in between them.
"The past year has been especially tough. Costs have increased, people have been reluctant to spend money as they worry about paying for the basics, and high interest rates have made paying debts or securing funding incredibly difficult."
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