Company insolvencies have risen to their highest levels since 2009, due to a “perfect storm” of headwinds.
The second and third quarters of this year saw the highest and second-highest volume of insolvencies since the aftermath of the global financial crisis, as interest rates and prices continued to rise.
Data from the Insolvency Service showed that 6,319 and 6,208 companies tipped into insolvency in the second and third quarters respectively.
The level for Q3 was up 10% year-on-year.
The moratorium on insolvency measures introduced during the pandemic has now ended, exposing companies with weak balance sheets to creditor action.
The high rate of insolvencies adds to the expectation that the Bank of England will keep the UK base rate at 5.25% when its monetary policy committee meets tomorrow.
