The number of registered company insolvencies in May 2023 was 2,552, 40% higher than in the same month in the previous year (1,825 in May 2022). This was higher than levels seen while the Government support measures were in place in response to the coronavirus (COVID-19) pandemic and also higher than pre-pandemic numbers.
There were 189 compulsory liquidations in May 2023, 34% higher than in May 2022. Numbers of compulsory liquidations have increased from historical lows seen during the coronavirus pandemic, partly as a result of an increase in winding-up petitions presented by HMRC.
In May 2023 there were 2,181 Creditors’ Voluntary Liquidations (CVLs), 38% higher than in May 2022. Numbers of administrations and Company Voluntary Arrangements (CVAs) were higher than in May 2022.
The numbers provided in this publication are not seasonally adjusted and changes between consecutive months may not indicate overall trends. Therefore, in this publication Forbes Burton compare to the same calendar month in the previous year.
The number of registered company insolvencies in May 2023 was higher than in the same month last year, driven by a higher number of CVLs.
England and Wales, May 2019 to May 2023, not seasonally adjusted.
This statistical release presents the numbers of CVLs, administrations, CVAs and receivership appointments based on their registration date at Companies House, and therefore numbers reflect company insolvency registrations rather than insolvency procedure start dates. Compulsory liquidation data are sourced from the Insolvency Service and provide an accurate measure of the number of new cases in each month. Data for the latest month were extracted from a live system five working days after month end and therefore figures are provisional.
Of the 2,552 registered company insolvencies in May 2023:
- There were 2,181 CVLs, which is 38% higher than in May 2022;
- 189 were compulsory liquidations, which is 34% higher than May 2022;
- 31 were CVAs, which is 121% higher than May 2022;
- There were 151 administrations, which is 80% higher than May 2022;
- There were no receivership appointments.
The chart above shows the historical trend of company insolvencies covering the past four years.
Up from pre-pandemic levels
From the start of the coronavirus (COVID-19) pandemic until mid-2021, overall numbers of company were low when compared with pre-pandemic levels. This is likely to have been partly driven by government measures put in place to support businesses and individuals during this time. Company insolvency numbers have now returned to and exceeded pre-pandemic levels.
Between 26 June 2020 and 31 May 2023, in England & Wales, 44 moratoriums were obtained and 21 companies had a restructuring plan registered at Companies House. These two procedures were created by the Corporate Insolvency and Governance Act 2020.
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This article contains public sector information licensed under the Open Government Licence v3.0.
