The number of registered company insolvencies in England and Wales in May 2023 was 2,552 -- 40% higher than in May 2022 (1,825). This is according to the latest monthly statistics from the ONS. There were 97 company insolvencies registered in Scotland, 4% higher than in May 2022.

The ONS said insolvencies were driven by Creditors’ Voluntary Liquidations, which were 38% higher than in May last year.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the jump in the number of insolvencies comes at a time when problems are piling up for businesses, and individuals.

"Even though the UK appears to be swerving a recession for now, the triple whammy of the rapid hike in borrowing costs, a super-tight labour market and onerous energy bills has been too much to bear for many firms. Spying little light at the end of the tunnel, with interest rates expected to keep rising, they are shutting up shop in greater numbers, as their debts have mounted up.

"During the pandemic, as the country went into panic mode, there was greater help available for firms, such as loans and relief measures aimed at ring-fencing businesses from aggressive creditor enforcement, which kept insolvency numbers lower. But now, as firms are still battling through an inflationary crisis, insolvencies have surged higher than pre-pandemic times."

On individual bankruptcies, which have edged up by 5% over the year, there are some signs that they could climb higher in the coming months, given the number of people seeking to shield themselves from creditors by registering for a ‘breathing space’, Streeter added.

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