Overview

• In May, company insolvencies in England and Wales climbed 8% from April to 2,238 cases, marking a 15% increase year-on-year and equating to one in 189 firms
• Creditors’ voluntary liquidations made up 1,734 of May’s insolvencies while compulsory liquidations eased by 7% from April’s ten-year peak
• Construction firms accounted for 17% of insolvencies in the year to April and wholesale and retail traders made up 15%, together representing nearly a third of all cases
• Businesses cite higher employer national insurance contributions, an increased minimum wage and rising business rates as key drivers of the recent insolvency surge
• Tom Russell, president of R3, warns that Chancellor Reeves’s planned tax measures could push dozens more companies into insolvency in the coming months