Increase in UK Company Insolvencies
UK Insolvency Service published its official insolvency statistics for Q3 of 2021 on 29 October 2021. It is noteworthy that the number of company insolvencies rose 17% from Q2 2021 and 43% from Q3 2020. The rise was primarily attributed to an increase in company voluntary liquidations (CVLs). It is the highest quarterly level in 12 years.
However, while the number of CVLs was higher in Q3 2021 as compared to pre-pandemic levels, other insolvency procedures like compulsory liquidations and administrations remain at historic lows. Part of the reason for this was the unprecedented fiscal measures used by the government to support business and the temporary restrictions on the use of statutory demands and winding-up petitions.
What Will The Future Bring?
The UK Budget announcement for 2022-2023 included some continued financial support for certain businesses, including a business rates discount in the hospitality, retail and leisure sectors. Most government measures, however, will cease or be replaced by tapering measures beginning 30 September 2021. Statutory demands and winding up petitions can now be filed (subject to certain restrictions to support small businesses and commercial tenants).
Due to these factors and other pressures - such as record-high energy costs, supply chain issues, staff shortages and the repayment of COVID loans - the number of company insolvencies in the UK is likely to rise in the months ahead.
Insolvency processes can be complicated and expensive, so why not let us guide you? To find out more, visit our website on https://www.silverinsolvencysolutions.co.uk or email us at email@example.com or give us a call on 0303 961 7169.