The number of company insolvencies in England and Wales has risen to its highest level in five years, according to the latest data from the Insolvency Service.
4,321 company insolvencies were recorded in the second quarter of 2019 – a 12% increase on the same period last year. It is the highest quarterly number recorded by the Insolvency Service since the beginning of 2014, with the increase being largely driven by Creditors’ Voluntary Liquidations (CVLs).
According to the Insolvency Service’s latest figures, CVLs accounted for 70.4% of all company insolvencies. 18.2% were compulsory liquidations, and all other types accounted for 11.4% of insolvencies.
Commenting on the figures, Martin McTague, Policy and Advocacy Chairman at the Federation of Small Businesses (FSB), said: ‘These latest figures are hugely concerning, highlighting the immense strain that small businesses are under.
‘Uncertainty is now severely weighing on small firms and the self-employed, making it harder for them to invest, plan and grow. Central to this is the unknown nature of what the UK’s future relationship with the EU will look like and the growing risk of a cliff edge no-deal Brexit on October 31, for which smaller businesses are simply not prepared.
If you have concerns about the future of your business, it’s best to act sooner rather than later – contact us for a no obligation discussion regarding your options.