2024 Annual Insolvency Statistics – commentary by Jodie Wildridge
January 27, 2025
Jodie Wildridge, barrister at Exchange Chambers in Leeds and deputy chair of the UK’s insolvency and restructuring trade body R3 in Yorkshire comments on the 2024 annual insolvency statistics.
- There were 23,872 seasonally adjusted corporate insolvencies in 2024. This was a decrease of 5.1% from 2023’s figure of 25,163, and an increase of 7.9% on 2022’s figure of 22,129
- There were 117,947 seasonally adjusted personal insolvencies in 2024. This was an increase of 14% on 2023’s figure of 103,434, and a slight fall of 0.7% on 2022’s figure of 118,752
Jodie Wildridge says:
“Despite a year-on-year decline in corporate insolvency numbers, the figures for this year are still higher than in 2022 and well above pre-pandemic levels. Compulsory liquidation levels have increased compared to last year as creditors pursue the debts they are owed in an effort to balance their own books, and while Creditors’ Voluntary Liquidation numbers have declined compared to 2023, they are higher than in 2022 and the years before and during the pandemic as a high volume of directors close their businesses now while the decision to do so still rests in their hands.
“2024’s insolvencies have been driven by another year of high costs and a series of political, economic and geopolitical events which have taken a toll on businesses in England and Wales. R3 members have told us that the Election, the Budget and the conflict in the Middle East have all led to increases in enquiries and requests for advice and support, and this reflects how these unexpected shocks can be and have been the tipping point for many businesses after years of battling harsh trading conditions.”
Adds Jodie:
“From a sectoral perspective, retail, hospitality and construction have all suffered this year. All three of these industries have been hit hard by continued rises in expenses, while retail and hospitality have been affected by cautious consumer spending over the past 12 months, and construction by bad weather and the delay to project starts and commissions caused by the General Election.
“These sectors are going to be some of the most affected by the Chancellor’s planned increases in Minimum Wage, Living Wage and Employers’ National Insurance Contributions. Although it’s likely we won’t see the impact of these on corporate insolvency figures until the end of the first or possibly the middle of the second quarter of next year, the prospect of their introduction is already causing concern for businesses right across the economy.
“Restructuring Plans have been a major and consistent topic of conversation in the profession this year. The Tasty plc ruling in May opened up this process to mid-market firms, and since it was made we’ve seen a number of recognisable names enter one in an attempt to resolve their financial issues. The challenge the profession faces is making Restructuring Plans accessible to the SME market – and given the positive impact this could have on local communities and supply chains by keeping viable SMEs open, I hope it can be achieved this year.”
Further press coverage can be found below:
