The number of firms falling into insolvency increased in January against the same month last year, according to official figures. Total company insolvencies in England and Wales hit 1,671 over the first month of 2023, the Insolvency Service said.
It represented a 7% rise against January 2022 and was 11% above pre-pandemic levels from 2020. Experts said the rise pointed towards the toll of higher borrowing costs and continued elevated levels of inflation for businesses.
Nevertheless, the data showed a decline in insolvencies compared with December, when 1,964 firms became insolvent. The Insolvency Service recorded 189 compulsory liquidations in January, rising 52% year-on-year.
