UK Companies Face a 30‑Year Insolvency Record – The Perfect Storm
Last year saw the number of companies hitting the breaker in England and Wales set a 30‑year high, thanks to a cocktail of high interest rates, stubborn inflation, and a dash of consumer scepticism.
Key Figures (2023 vs 2022)
- Collapses: 25,158 – a 14% jump.
- Creditors’ Voluntary Liquidations (CVLs): 20,577 – a 9% rise, the biggest since 1960.
- Company Liquidations: 2,827 – a 44% surge.
- Administrations: 1,567 – up steadily.
- Company Voluntary Arrangements (CVAs): +67% – another hot bag of numbers.
Why 2024 Looks Like a Rough Ride
Industry voices warn that the next year could be even tougher for UK businesses, with high borrowing costs and rising input prices piling on the pressure.
Julie Palmer – partner at Begbies Traynor – summed it up: “A perfect storm of high rates, inflation, weak consumer confidence, and rising costs has pushed thousands of firms into insolvency. If the economic climate doesn’t improve fast, 2024 might be the final nail for those struggling businesses that survived last year.”
Mark Ford – restructuring guru at Evelyn Partners – added: “Even if rates and prices seem to calm, the trade environment stays hot. Construction, retail, leisure and healthcare are bracing for higher costs, while Middle‑East tensions threaten to choke supply chains and delay deliveries.”
What It Means for Small and Medium‑Sized Businesses
Many enterprises are already feel‑iron‑in‑the‑midst. If the cost of borrowing stays high, those with lingering debt may find it impossible to keep the lights on for 2024.
Takeaway: A Stormy Climate, Still a Chance to Weather
While the headline numbers are sobering, businesses that innovated, diversified, and kept margins tight may still sail through the rough waters – but it won’t be easy.
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