Insolvency Service Publishes Annual Summary Of UK Insolvency Statistics In 2023
As part of the latest set of quarterly UK insolvency statistics, the Insolvency Service has published an annual summary of insolvency numbers in 2023. These statistics round off the information provided about the year just gone and are important reading for company directors. They offer a clear picture of the wider business landscape from which business professionals can situate their own challenges and successes in 2023.
A full breakdown of the number of company liquidations, creditors voluntary liquidations (CVLs), administrations and company voluntary arrangements (CVAs) in 2023 is provided in the Insolvency Service’s annual summary. While important, these exact numbers may mean more to insolvency practitioners than to company directors. For this reason, we have summarised the key trends and headlines that you need to be aware of.
Highest Annual Insolvency Figures In 30 Years
25,158 registered company insolvencies were reported in 2023. The majority of these were CVLs (a total of 20,577), however the figures also included 2,827 compulsory liquidations, 1,567 administrations, 185 CVAs and two receivership appointments. Crucially, the Insolvency Service noted that these total numbers of company insolvencies are the highest since 1993.
CVLs At A Record High
Not only did the number of CVLs form the majority of company insolvencies in 2023, but the number of company directors choosing to voluntarily close down their businesses hit record highs since records began in 1960. This indicates that pressure on businesses was exceptionally high in 2023 and, as many struggled to pay their debts, large numbers of directors opted to liquidate voluntarily to alleviate legal pressure and ensure all company affairs were wound up correctly.
One In 186 Active Companies Insolvent In 2023
A final standout message from the annual summary of insolvency statistics is that one in 186 active companies (53.7 per 10,000 active companies) entered insolvency liquidation in 2023. This is both higher than the comparable rate in 2022, and the highest level since Q3 2013. However, it is important to note that the number of registered companies has also increased over time. With this in mind, know that the 2023 rate was still much lower in 2023 than it was at the peak of the 2008/2009 recession when the insolvency rate peaked at 94.8 insolvencies per 10,000 active companies.
What To Do Next
While 2023 is now behind us, understanding how these annual insolvency statistics may apply to your own business will be key in navigating another challenging year ahead. With total insolvency numbers at a high and CVL numbers at their very highest, you are not alone if your business is struggling to pay its debts and there are measures that you can take if you are facing insolvency.
Should you be concerned about the current state of play or have concerns related to the performance of your own business, it is important to seek expert advice at the first available opportunity. A licensed insolvency practitioner should be your first port of call, as they can talk you through the different options available to you and, if necessary, act as the liquidator should choosing to liquidate your company be the most suitable outcome.
The team of licensed insolvency practitioners here at My Liquidation can help. Don’t hesitate to get in touch with us today to understand your options during this complex time.
