Company insolvencies in England and Wales have hit their highest level since the aftermath of the financial crisis, according to the Office for National Statistics (ONS).
In a report out today, the ONS reported that 5,629 companies collapsed across England and Wales in the second quarter of 2022, the most since the third quarter of 2009.
However, this was still lower than the peak of 6,943 reached in quarter four of 2008 during the global financial crisis.
Construction firms made up 20% of all the insolvencies, followed by the wholesale and retail trade industries at 14%.
Company insolvencies in England and Wales reached their highest quarterly level in Quarter 2 (Apr to June) 2022 since Quarter 3 (July to Sept) 2009.
— Office for National Statistics (ONS) (@ONS) October 7, 2022
In a sign that the worst was yet to come more than 1 in 10 UK businesses said they faced a “moderate-to-severe” risk of insolvency in August.
Over a fifth (22%) of businesses said energy prices were their main concern, up from 15% in late February 2022, while 30% of small firms (with 10 to 49 employees) cited energy as their top worry.
The ONS said the recent rise in company insolvencies has been driven by Creditors' Voluntary Liquidations (CVLs). CVLs accounted for 89% of all company insolvencies in England and Wales between quarter 1 2021 and quarter 2 2022, it said.