Company Insolvencies in England and Wales Fall in October 2024

The statistical commentary notes that, despite the fall, the number of company insolvencies remained much higher than during the COVID-19 pandemic and between 2014 and 2019.

Breakdown by procedure

October's total in England and Wales comprised 188 compulsory liquidations, 1,445 creditors' voluntary liquidations, 100 administrations, 12 company voluntary arrangements and two receivership appointments. All procedure types, apart from receivership appointments, which are now rare, were lower than in September.

Insolvency rate and sectors

One in 186 companies on the Companies House effective register entered insolvency in the 12 months to 31 October 2024, a rate of 53.8 per 10,000 companies, down from 56.5 per 10,000 a year earlier. The rate remains well below the peak of 113.1 per 10,000 during the 2008 to 2009 recession, partly because the number of companies on the register has more than doubled since then.

Construction recorded the highest number of insolvencies in the 12 months to September 2024, with 4,264 cases, or 17% of cases where the industry was known. It was followed by wholesale and retail trade including motor vehicle repair (3,774), accommodation and food services (3,679), administrative and support services (2,424) and manufacturing (1,965).

Scotland and Northern Ireland

There were 116 company insolvencies in Scotland in October 2024, 18% more than in October 2023, and 31 in Northern Ireland, 15% more than a year earlier.

What it means

The statistics cover companies entering a formal insolvency procedure because they cannot pay their debts, and exclude solvent closures such as members' voluntary liquidations. All figures are provisional and subject to revision. For lenders, insolvency practitioners and trade creditors, the monthly fall is a welcome sign, but insolvency levels remain elevated by recent historical standards. The next release is scheduled for 17 December 2024.

Sources

• GOV.UK: Commentary, Company Insolvency Statistics October 2024
• GOV.UK: Company insolvencies, October 2024