UK corporate insolvencies increase 13% in November

Corporate insolvencies in the UK increased by 13% in November 2024 from the previous month, according to the latest data from the Insolvency Service.

The total number of corporate insolvencies stood at 1,966 compared to October’s total of 1,743 and was 12% lower than November 2023’s figure of 2,243. 

Company insolvencies in November 2024 consisted of 254 compulsory liquidations, 1,565 creditors’ voluntary liquidations (CVLs), 132 administrations and 14 company voluntary arrangements (CVAs). All types of company insolvency – apart from receivership appointments, which are now rare – were higher than in October 2024.

Personal insolvencies increased by 12.2% in November 2024 to a total of 10,012 compared to October’s total of 8,924. The November 2024 figure was 25.5% higher than in November 2023. 

“The monthly rise in corporate insolvencies is due to an increase in all forms of corporate insolvency process, with the most notable increases coming in Creditors’ Voluntary Liquidations (CVLs) and Compulsory Liquidations. Compared to this time last year, corporate insolvency numbers have fallen, and this is due to a reduction in CVLs and Compulsory Liquidations, while Administration numbers were higher last month than in November 2023.

“Fallout from the Budget and ongoing cost issues have driven corporate insolvencies this month. After years of rising outgoings and falling margins, businesses are facing further increases in wages as a result of the Chancellor’s announcement and this could be an expense too far for some firms.

“Members are telling us that enquiries have increased over the last month, as firms look to restructure or have early conversations about their financial concerns or their insolvency options ahead of the new year. This kind of activity won’t be reflected in the current set of insolvency statistics, but it provides an insight into the mood, challenges and concerns of the business community as we come to the end of another difficult year.

“In terms of sector activity, retailers saw a drop in sales in November, but many had anticipated this as consumers curtailed their spending ahead of Black Friday, while leisure and hospitality businesses saw an increase in consumer spending. Management teams in all three sectors will be hoping that Black Friday has fired the starting gun on the Christmas shopping and spending period, and that it will be a busy one as many firms in these industries have had a difficult year.

“The latest figures for the construction industry showed that output fell in October, and this was driven by a reduction in repair and maintenance work. Construction has suffered in recent years with disruptions to work and increased costs hitting margins and businesses, while the General Election and the Budget have affected work being commissioned and starting more recently. We’re now firmly into the winter months, and it remains to be seen how the weather will affect work on site and the sector’s output levels.”