The Insolvency Service has revealed that company insolvencies across England and Wales climbed 31% quarter-by-quarter to 3,116 in Q2 FY21.
The cases, which represented a 4% year-on-year climb, were made 90% of CVLs, 5% of administrations, 3% of liquidations, and 1% of CVAs.
England and Wales’ company liquidation rate for the year ended 30 June 2021 also increased to 25.9, up from 25.3 in Q1 FY21.
The liquidation rate is calculated on a four-quarter rolling rate per 10,000 active companies, with Q2’s 25.9 representing roughly one in 386 companies becoming insolvent in the 12 month period.
Construction, accommodation and food services activities, and wholesale and retail trade saw the highest number of company insolvencies during the year to 30 June 2021, with 1,801, 1474, and 1,366 insolvency respectively.
Scotland, which operates a partly devolved legislation, saw a 32% increase in company insolvencies, rising 32% quarter-by-quarter to 165,
Northern Ireland saw a slightly higher quarterly spike in company insolvencies of 35% during the period.
However, both Scotland and Northern Ireland saw respective year-on-year declines to the total liquidation rates of 15.5 and 31 in Q2 FY21.