Company insolvencies in England and Wales reached their highest level in 30 years in 2023, official figures have revealed.
According to the Insolvency Service, the total number of company insolvencies last year was 25,158, which was the highest number since 1993 and 14% higher than in 2022.
Construction was the most commonly affected sector, with 4,371 companies becoming insolvent in 2023. The wholesale, retail trade and motor vehicle repair sector (3,929) and accommodation and food service industry (3,727) were also significantly affected.
During the coronavirus pandemic in 2020 and 2021, when government support measures were in place, company insolvency numbers were low compared to historical levels. However, the number of creditors voluntary liquidations, the most common type of insolvency procedure, increased in 2022 to exceed pre-pandemic levels, and numbers of all insolvency types, including compulsory liquidations and administrations, surged in 2023.
Company insolvencies in 2023
Surge in government spending on unpaid wages and redundancy pay
One in 186 active companies entered insolvent liquidation in 2023, the company insolvency statistics for October to December 2023 show.
The surge in company insolvencies coincided with an increase in the number of proposed redundancies in Britain in 2023.
The most prominent employer to enter administration in 2023 was Wilko, which employed 12,000 people.
Restructuring firm Begbies Traynor has warned that more than 47,000 UK businesses have started 2024 in critical financial distress.
TUC general secretary Paul Nowak said: “Businesses are struggling because the Conservative government has sucked the life out of our economy. We can’t afford to stay in this doom loop of cuts, falling living standards and stagnation. We need a proper plan for jobs and growth that can get living standards rising again.”
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