The Shockwave of Insolvencies in England & Wales
Recent figures show a 10% surge in business dissolutions compared to the same quarter in 2023, bringing the numbers to their highest point since Q2 2009 – the year of the steepest GDP drop since records began in 1949.
What’s Really Going on?
- Inflation is stubbornly sticky, pushing operating costs higher while consumers trim their spend on non‑essential items.
- The government’s post‑COVID bail‑outs have worn thin, leaving many firms unsupported when they need it most.
- Multiple external blows – from rising prices to cautious shoppers – are eroding profit margins across the board.
Brendan Clarkson on the Ground
Brendan Clarkson, Business Advisory Director at PKF GM, says the “tsunami” of insolvencies is now a hard reality. He urges business owners to reach out for help sooner rather than later to avoid a spiral.
“The evidence shows a massive wave of insolvencies is cresting. Inflation remains high and government support has lagged, pushing businesses into this precarious position.”
His key take‑away: “If you sense trouble, grab advice now. It’s a tough chat, but sooner you start addressing issues, the more options you’ll have before things hit a fever pitch.”
Why Acting Early Matters
- Early intervention opens up more solutions.
- It buys time for thoughtful decisions.
- It prevents small worries from becoming big crises.
