So, What’s the Deal with Company Insolvencies?
Today’s fresh report from the Insolvency Service says England and Wales saw 1,747 company insolvencies in October 2024. That’s down 10% from September’s 1,950 and a cool 24% off the same month last year. Yet, despite the dip, the numbers are still buzzing far above the pandemic lows and the 2014‑2019 average.
Crunching the Numbers
- October 2024: 1,747 insolvencies
- September 2024: 1,950 insolvencies
- October 2023: 2,293 insolvencies
- Overall trend: still a lot higher than pre‑pandemic era
Expert Thoughts from Mark Ford
Mark Ford, a Partner at Evelyn Partners, said the drop is a glimmer of hope, but the crisis isn’t over yet.
“Even with a monthly dip, the figures are still sky‑high historically. Monthly swings can go wild,” he explained.
“Many businesses are walking a tightrope after years of high borrowing costs, steep inflation, and consumers tightening their belts. Not all can pass on the cost hike fully, leaving them drowning in debt. It’s a ‘sudden‑cash‑out’ problem for some.”
Why the Storm Still Rages
The new government vowed to boost growth, but early data shows the economy barely budged in its first three months. Consumer confidence has slipped, and that’s making life tough for firms everywhere.
Ford added:
“The Budget gave little lift to struggling firms. With wage bills rising due to increased National Insurance contributions and a higher minimum wage, the pressure mounts. Most companies will try to shuffle costs onto shoppers, but that’s not always possible. Expect a fight for survival in the coming months.”
Industries that need a lot of staffing—hospitality, healthcare, retail—will feel the heat the hardest. The Chancellor herself warned that wage hikes could threaten job security, and business leaders are already pondering layoffs.
What’s the Bottom Line?
Companies in distress should act now to survive and save jobs. Managing cash effectively remains the top priority.
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