The Insolvency Service published the most recent figures for UK company insolvencies in October 2024.
The number of registered company insolvencies in England and Wales was 1,747 in October 2024, representing a 10% decrease from September 2024 (1,950) and a 24% decline compared to the same month in the previous year.
While the number of company insolvencies has recently decreased, it is still significantly higher than during the COVID-19 pandemic and the period from 2014 to 2019.
Of the 1,747 registered company insolvencies in October, there were:
Figure 1: Company insolvencies in October 2024 were slightly lower than in September 2024 and October 2023.
Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures).
In October 2024, Company Voluntary Liquidations (CVLs) represented 83% of all company insolvencies. The number of CVLs fell by 7% from September 2024 and was 24% lower than in October 2023 after seasonal adjustment.
CVLs had been rising at approximately 10% per year, but during the COVID-19 pandemic, they fell to their lowest levels since 2007.
The seasonally adjusted number of compulsory liquidations in October 2024 was 14% lower than in September 2024 and 20% lower than in October 2023.
The number of compulsory liquidations has increased from the very low levels in 2020 to 2021. This change comes after restrictions on statutory demands and certain winding-up petitions, which can lead to compulsory liquidations, have been lifted.
Following seasonal adjustments, the number of administrations in October 2024 showed a notable decrease—35% lower than in September 2024 and 28% lower than in October 2023.
The number of administrations increased in 2022 and 2023, following an 18-year low during the COVID-19 pandemic in 2021. Current levels resemble those observed between 2015 and 2019.
CVAs were 48% lower in October 2024 than in October 2023 and 29% lower than in September 2024. The numbers remain low compared to historical levels. Due to low volumes, CVAs are not seasonally adjusted.
Company insolvencies by industry
The five industries that experienced the highest number of insolvencies in the 12 months to September 2024 were:
Company insolvency by industry, England and Wales, October 2023 to September 2024 compared with October 2022 to September 2023.
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CoCredo’s Managing Director, Dan Hancocks, says, “Many businesses are understandably worried about how the recent changes to employer National Insurance Contributions announced in the Budget will affect their operations. This is a challenging time, and we recognise the uncertainty of such changes.
Unfortunately, this change could lead to higher costs for SMEs, and many may feel compelled to respond by adjusting their staff levels or raising prices, which will be challenging. With the deadline in April, businesses have some time to develop strategies for managing the cost increases associated with this policy. However, there will be concerns about how this might impact corporate insolvency rates in the future.”
“We understand that navigating additional costs can be challenging for business owners. We encourage you to review your expenses and explore ways to integrate this new expense into your budget. Recognising the potential impact on your bottom line is crucial; we know this can be a concern. Seeking professional advice can provide you with the support you need to manage this situation effectively and help identify any potential issues early on, allowing for smoother transitions during this time.”
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