Corporate insolvencies decreased by 18.9% in December 2023

Corporate insolvencies decreased by 18.9% in December 2023 to a total of 2,002 compared with November’s total of 2,470, and increased by 1.9% compared with December 2022’s figure of 1,965, according to the latest figures from the Office for National Statistics (ONS).

The company insolvencies consisted of 153 compulsory liquidations, 1,731 creditors’ voluntary liquidations (CVLs), 103 administrations and 15 company voluntary arrangements (CVAs). CVL numbers were higher than in December 2022, while compulsory liquidation and administration numbers were lower.

Additionally, personal insolvencies decreased by 20.3% month-on-month in December 2023 to a total of 6,584 and decreased by 20.2% compared with December 2022’s figure of 8,254.

Nicky Fisher, president of R3, the UK’s insolvency and restructuring trade body, said: “The monthly fall in corporate insolvencies is due to a drop in Compulsory Liquidation, Creditors’ Voluntary Liquidation (CVL) and Administration numbers, while the year-on-year rise in corporate insolvency levels is driven by an increase in CVL numbers and a slight increase in Company Voluntary Arrangements, as the volume of businesses entering the other corporate insolvency processes fell compared to last December.

“The figures published today are the highest for December in four years and reflect the final month of a difficult year for businesses in England and Wales. December was tough for many firms as they faced additional expenses at a time when margins were already tight. These won’t have been helped by consumer spending slowing and rising energy costs.”

He added: “If the New Year trading period hasn’t improved on the one before Christmas, we could see insolvency numbers continue to rise, as businesses who had banked on a festive income boost to cover the shortfall in their income turn to the profession for help.”