·         Corporate insolvencies in England and Wales increased by 12.8% in November 2024 to a total of 1,966 compared to October's total of 1,743, and decreased by 12.3% compared to November 2023's figure of 2,243.

 

>        Corporate insolvencies increased by 5.7% from November 2022's total of 1,860.

 

·         Personal insolvencies in England and Wales increased by 12.2% in November 2024 to a total of 10,012 compared to October's total of 8,924, and increased by 25.5% compared to November 2023's figure of 7,978.

 

>        Personal insolvencies decreased by 2.7% from November 2022's total of 10,294. 

 

Fran Henshaw, North West Chair of R3, the UK’s insolvency and restructuring trade body, says:

 

“The monthly rise in corporate insolvencies is due to an increase in all forms of corporate insolvency process, with the most notable increases coming in Creditors’ Voluntary
 Liquidations (CVLs) and Compulsory Liquidations. Compared to this time last year, corporate insolvency numbers have fallen, and this is due to a reduction in CVLs and Compulsory
 Liquidations, while Administration numbers were higher last month than in November 2023.

 “Fallout from the Budget and ongoing cost issues have driven corporate insolvencies this month. After years of rising outgoings and falling margins, businesses are facing further

increases in wages as a result of the Chancellor’s announcement and this could be an expense too far for some firms.

 “Members are telling us that enquiries have increased over the last month, as firms look to restructure or have early conversations about their financial concerns or their insolvency options ahead of the new year. This kind of activity won’t be reflected in the current set of insolvency statistics, but it provides an insight into the mood, challenges and concerns of the business community as we come to the end of another difficult year.

 “In terms of sector activity, retailers saw a drop in sales in November, but many had anticipated this as consumers curtailed their spending ahead of Black Friday, while leisure and hospitality businesses saw an increase in consumer spending. Management teams in all three sectors will be hoping that Black Friday has fired the starting gun on the Christmas shopping and spending period, and that it will be a busy one as many firms in these industries have had a difficult year.

 “The latest figures for the construction industry showed that output fell in October, and this was driven by a reduction in repair and maintenance work. Construction has suffered in recent years with disruptions to work and increased costs hitting margins and businesses, while the General Election and the Budget have affected work being commissioned and starting more recently.

 

We’re now firmly into the winter months, and it remains to be seen how the weather will affect work on site and the sector’s output levels.”

 Fran, who is Head of Corporate Recovery and Insolvency at Beever and Struthers, continues: “When it comes to individual insolvencies, the monthly increase has been driven by a rise in Individual Voluntary Arrangements (IVAs) while Bankruptcy and Debt Relief Order (DRO) numbers have fallen slightly. The year-on-year increase has been driven by a rise in DROs and IVAs, while Bankruptcies have fallen compared to this time last year.

 

“Changes to the Debt Relief Order threshold and the abolition of its administrative fee have seen more people entering this process instead of a Bankruptcy or IVA, but continued demand for these processes coupled with high numbers of people entering a Breathing Space show that the UK has a growing issue with personal debt.

 “Demand for personal insolvency support is very much still being driven by cost-of-living issues. People who were struggling but getting by are now turning to an insolvency process in increasing numbers as ongoing rising prices have pushed their expenses to an unmanageable level. With Christmas just around the corner, many are looking at how they can cut their spending on both essentials and luxury items as they prepare for the festive season and the spending associated with it.

 “We urge anyone who is worried about their financial situation to seek advice as early as possible. We know how hard it is to voice your concerns about money, but having that

discussion at an early stage with a qualified advisor will give you more options and more time to take a decision about your next step than if you’d waited till the problem had worsened.

 “Most R3 members in the North West will offer a free consultation to prospective clients, so they can understand more about their situation and outline the potential options open to them to improve it.”