The number of company insolvencies in December 2023 was 2% higher than in December 2022.
The Insolvency Service has confirmed that the number of registered company insolvencies in December 2023 was 2,002, which is 2% higher than the same month in the previous year (1,965 in December 2022). This number is higher than the levels seen when the Government support measures were in place in response to the COVID-19 pandemic and is also higher than the pre-pandemic numbers.
Of the 2,002 registered company insolvencies in December 2023:
Figure 1: The number of registered company insolvencies in December 2023 was slightly higher than in the same month last year, driven by a higher number of CVLs.
In December 2023, the total number of insolvencies for individuals was 6,584, which is 20% lower compared to December 2022 (8,254).
The individual insolvencies consisted of:
Figure 2: IVA numbers in 2023 were lower than in 2022. Bankruptcy and DRO numbers were higher in December 2023 than in the same period last year.
Source: Insolvency Service
Dan Hancocks, CoCredo MD, says: “The data released today indicates that December recorded the highest figures in the past four years and reflects how challenging December was for businesses in England and Wales. In December, many companies had to deal with additional expenses, which further put a strain on their already tight margins. This was compounded by sluggish consumer spending and the escalating energy costs.”
“If the trading period in the New Year does not improve compared to the period before Christmas, we might see a continuous rise in insolvency numbers. This could be attributed to businesses that expected a boost in their income during the festive season but fell short of their targets.”
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