What Are The UK Insolvency Rates Going Into 2025?
Last year was undoubtedly a challenging one, with a new government and new Budget to contend with along with the continued effects of the high cost of living and lower consumer confidence. Now that 2025 is finally upon us, you won’t be alone if you’re keen for your business to really hit the ground running this year.
Before embarking on grand growth plans and new initiatives, it’s always important to reflect and reconsider at the turn of the New Year. Understanding UK insolvency rates should always be part of your reflections and, each month, the insolvency service publishes a range of statistics offering these valuable insights. The latest data, released on the 17th December 2024, shares a number of key messages going into 2025. Here’s what you need to know…
Company Insolvency Numbers Increased At The Tail End Of 2024…
The latest insolvency service statistics summarise the exact number of compulsory liquidations, creditors voluntary liquidations (CVLs) and administrations registered in the previous month. The statistics released in December therefore highlight UK insolvency rates in November 2024 – one of the key trading months of the year.
The standout headline from this latest report is that the total number of company insolvencies registered in November 2024 was 13% higher than the previous month. A total of 1,966 company insolvencies were recorded, including 1,565 CVLs, 132 administrations, 14 company voluntary arrangements (CVAs) and one receivership appointment.
But The Insolvency Rate Remained Lower Than The Previous Year
However, while actual company insolvency numbers appear to have increased in the final report of 2024, the 12-month rolling UK insolvency rate saw a slight drop. 52.9 per 10,000 companies entered insolvency in the 12 months up to the 30th November 2024, compared to 57.3 companies per 10,000 over the same period in 2023.
Whether this trend continued into the final month of the year remains to be seen, but perhaps implies that the end of the year was slightly more fruitful than anticipated for many businesses. The slight fall in yearly insolvency rates may also indicate that many companies were waiting to assess performance over the Christmas trading period before making any decisions regarding liquidation.
The Mood Is Shifting As Budget Impact Continues
Ultimately the current insolvency rates demonstrate that we are still yet to see any let up since company insolvency levels started to increase from the lows seen in 2019. Business costs have also continued to rise following the new government’s Autumn Budget, leading many to consider liquidation as a response to ongoing financial difficulties earlier than they may have historically. As highlighted in the UK’s insolvency and restructuring trade body R3’s commentary of the latest insolvency statistics, these kinds of considerations do not directly contribute to the current insolvency rate. However, if the general mood of concern does translate into action then we can expect to see a rise in company insolvencies going into 2025.
Plan For The Year Ahead With My Liquidation
If you are concerned about the viability of your business in light of high levels of company insolvency at the end of 2024, now is the time to act. Businesses are tipped to experience a range of challenges this year as Autumn Budget measures take effect and you may wish to explore company insolvency as a solution to your financial woes. By seeking professional advice now, you can be certain that you have a complete understanding of your options and can make decisions that suit both your business and the current economic conditions.
At My Liquidation, our licensed insolvency practitioners can offer you effective and transparent liquidation advice to help you plan for the year ahead. Don’t hesitate to get in touch with us to discuss your concerns and get a grip on the liquidation options available to you moving forward.
