3 Headlines From March 2024’s UK Insolvency Statistics
Unless you’re a total stranger to the My Liquidation blog, you’ll be well aware that the Insolvency Service publishes a set of data detailing company insolvency levels each month. This month’s data, reflecting on March 2024, has now been released and offers a range of key and interesting insights for businesses.
The latest UK insolvency statistics cover all types of company insolvency, including compulsory liquidation, creditors voluntary liquidation, administration and company voluntary arrangements. The report compares the levels of these insolvency types to the previous month, helping businesses to situate their own successes and challenges within a wider landscape. Here’s everything you need to know from the most recent report, published on the 26th of April 2024.
1. Company Insolvency Numbers Are Falling
Recent insolvency statistics have largely painted the same picture: that businesses are struggling and that insolvency rates are high. While the overall number of company insolvencies registered in March 2024 was much higher than those registered during and pre-pandemic, this month’s figures are lower in comparison to both last month and the same month last year.
1,815 insolvencies were registered in March 2024 as per the latest report, signalling a 17% year-on-year decrease and potentially a slight lightening of the mood amongst UK businesses. All types of company insolvency reduced compared to both March 2023 and February 2024.
2. Insolvency Rates Lower Than 2008-9 Recession
In response to the ongoing cost of living crisis and high inflation in the UK, there has been much discussion about whether or not we are in a recession. Minds are cast back to the difficulties of the 2008-09 recession, and while we cannot escape the fact that times are particularly tough and turbulent at the moment, the latest insolvency statistics highlight the fact that the current insolvency rate is still much lower than the peak of the 2008-09 recession. However, the Insolvency Service does stress the fact that this is because the number of companies included in the calculations has effectively doubled.
3. Yearly Data Is In
The release of the latest UK insolvency statistics coincides with the start of the new financial year, meaning that the report also offers data spanning the entirety of the financial year just gone. While March 2024’s statistics have shown positive signs, the overall insolvency rate for 2023-24 was still high and higher than its predecessor. In fact, the Insolvency Service reports that one in 179 registered companies entered insolvency last financial year. This highlights how the operating landscape has been particularly tough for UK businesses and makes the positive headlines from this month’s report even more notable.
Next Steps For Your Business
Though the latest insolvency statistics deliver headlines undoubtedly more positive than recent months, they equally remind us that insolvency numbers are still very high and that the past year has been a challenging one for UK businesses. This message should serve as a stark reminder of the need to act quickly and effectively should your business be in a difficult position as prompt action can be the difference between survival or liquidation.
If you need advice about your business or think you may be facing liquidation, make sure you speak to the trustworthy professionals here at My Liquidation. Our licensed insolvency practitioners have years of experience talking businesses through their options and helping you navigate current market conditions, whether recovery is possible or liquidation is the most suitable course of action. Get in touch today to find out more.
