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Insolvency Service data has confirmed that the total number of registered company insolvencies for the quarter ending December 2022 was 30% higher than in the same quarter last year at 5,995.
This brought registered corporate insolvencies for the whole of 2022 to a total of 22,109, which represents an increase of 57% compared with 2021.
These figures come as government support post-Covid has also ended, with Covid loans or HMRC arrears now requiring to be repaid.
As a result, compulsory liquidations have risen 356% year-on-year, driven in part by increased HMRC petitions and bank action to recover these outstanding debts.
Lynne Blakey, a director in the advisory consulting team at Evelyn Partners and a member of the Institute for Turnaround, said: “The year-on-year rise in quarterly insolvency statistics is set in a period of rapidly increasing costs, significant wage pressure, high levels of political and economic instability and escalating interest rates as the Bank of England try and stem inflation.
“In short, businesses are suffering. We are meeting with increasing numbers of directors and business owners who are struggling to deal with these increasing pressures. Whilst some are proactively seeking advice and help at an early stage, unfortunately many are still leaving it too late.”
She added: “With interest rates rising further, this places more pressure on debt burdened businesses and consumers alike, it is important that directors seek help at an early stage to help protect shareholder value and preserve jobs.”
