In April 2024, business insolvencies in England and Wales reached 2,053, a 3% increase from March. Factors such as rising employer's national insurance and increased minimum wages from the Chancellor's Autumn Budget have adversely affected businesses, leading to pay freezes and potential mass redundancies. Notably, creditor's voluntary liquidations peaked at 1,544 as companies opted to close amidst economic uncertainty. Compulsory liquidations also reached a five-year high, as creditors pursue unpaid debts. Industry experts suggest these trends expose businesses to significant financial strain, exacerbated by recent market volatility and tariffs.
Creditors' voluntary liquidations remain the process companies most commonly enter into - and their consistently high numbers reflect the ongoing challenges, high costs and political and economic uncertainty businesses face.
Compulsory liquidations have also hit their highest level in more than five years as creditors chase down unpaid debts in an attempt to meet their own payment deadlines.
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