The 3 Main Headlines From The Latest Company Insolvency Statistics

Hand changing calendar from 2024 to 2025

That’s right, it’s already that time of the month again, as the Insolvency Service has released its latest company insolvency statistics report! This data is published each month to detail the number of company insolvencies, including compulsory liquidation, creditors voluntary liquidation (CVL) and administration levels. 

However, this month’s report is slightly different to previous iterations from the past year. While the latest company insolvency statistics of course summarise December 2024 to offer the month-on-month comparison we examine regularly here at My Liquidation, they also encompass a fascinating set of annual company insolvency statistics. As a result, the latest company insolvency statistics allow us to paint a clearer picture of what 2024 was like as a whole for businesses in England and Wales and we have summarised the key headlines in this article. Read on to discover everything business owners need to know!

Annual & Monthly Decline In Company Insolvencies

As we have highlighted already, the latest insolvency statistics include both an annual summary of company insolvencies alongside the standard monthly insolvency statistics. What is particularly interesting is that the data shows a decline in the total number of company insolvencies both year-on-year (2023 to 2024) as well as month-on-month (November 2024 to December 2024). 

The total number of company insolvencies in 2024 was 5% lower than in 2023, with the insolvency rate dropping as a result. December’s company insolvency total – 1,838 companies – was also both 6% lower than the previous month and 14% lower than December in 2023. 

Changes In Insolvency Levels Driven By Decrease In CVL Numbers

Upon diving into the data further, the overarching trend of a reduction in company insolvencies is driven quite specifically by changes in the number of creditors voluntary liquidations (CVLs). The Insolvency Service highlights that “the change in total company insolvency numbers was mostly driven by CVLs, which were 8% lower than the record high numbers seen in 2023.” Monthly data painted a similar picture, with fewer CVLs in December 2024 compared to November 2024.

Longer-Term Trends Still Bleak

At first glance, these trends make for welcome reading, given that they indicate a decline in business owners having to opt to close their companies as a result of insolvency. However, while CVL numbers may be down, the latest insolvency statistics also highlight that compulsory liquidation numbers were on the rise in 2024. In fact, compulsory liquidations were at their highest level since 2014. This unfortunately indicates a worrying trend that business owners are not even considering a CVL – the more favourable method of liquidation for all involved – before their hand is forced via a winding-up petition from HMRC. 

If your business is struggling and you believe it may be insolvent, seeking professional advice at the earliest opportunity is always paramount. The latest insolvency statistics show that creditors will not hesitate to pursue their debtors in the current economic climate and company insolvency levels remain high as a result. By seeking professional advice, you can explore voluntary solutions such as a CVL, which allows your business to liquidate in compliance with all rules and regulations but free from any additional pressure from creditors. 

At My Liquidation, our licensed insolvency practitioners are on hand to support you with the transparent and effective insolvency advice you need. If you are apprehensive about the future in light of the latest insolvency statistics, do not hesitate to get in touch with us today.

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