Company insolvencies remain high despite 10% fall in October

Registered company insolvencies in England and Wales were 10% lower in October at 1,747 than in September, and were 24% lower than the same month in the previous year, according to data published by The Insolvency Service. 

However, the government office reported that the number of company insolvencies still remain much higher than those seen both during the pandemic and between 2014 and 2019. 

Evelyn Partners has warned that “we are not out of the woods yet”, stating that many businesses remain in “perilous” positions following a long period of high borrowing costs, high inflation and low consumer confidence. 

Mark Ford, partner at Evelyn Partners, said: “The new UK government entered office with a pledge to focus on growth, but data released last week confirmed that the economy has barely grown in their first three months. Consumer confidence has also been on the slide in recent months and this is making life even more difficult for businesses. 

“Businesses will do all they can to pass these costs on to consumers, but this won’t always be possible and we can expect to see many fighting for their survival in the months ahead. Those operating in labour-intensive industries, such as hospitality, healthcare and retail will need to work particularly hard to remain competitive and viable.”

John Cullen, insolvency partner at Menzies, added: “The impact of the recent budget won’t be felt for some time yet and, unless there is a real focus in helping certain sectors, it would be unrealistic to think that corporate insolvencies will go anywhere but up during the course of 2025. 

“With growth not being as strong as anyone would’ve hoped, only the most optimistic of forecasters would suggest anything different.”