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Insolvency data March 2023

ended 18. April 2023

The latest insolvency data for companies and individuals has just been published. You can read the full report >> here <<. Key points below. Any thoughts, send them across ASAP as this story is BREAKING. We will issue your comments to the trade and national media this morning.

  • The number of registered company insolvencies in March 2023 was 2,457, 16% higher than in the same month in the previous year (2,120 in March 2022).
  • There were 288 compulsory liquidations in March 2023, which is more than twice the number in March 2022.
  • In March 2023 there were 2,011 Creditors’ Voluntary Liquidations (CVLs), 9% higher than in March 2022. Numbers of administrations and Company Voluntary Arrangements (CVAs) were also higher than in March 2022.
  • For individuals, 672 bankruptcies were registered, which was 2% higher than in March 2022, but less than half of pre-2020 levels.
  • There were 3,383 Debt Relief Orders (DROs) in March 2023, which was 35% higher than March 2022. Monthly DRO numbers may be volatile at present due to the introduction of new DRO hubs.
  • There were, on average, 6,100 Individual Voluntary Arrangements (IVAs) registered per month in the three-month period ending March 2023, which is 14% lower than the three-month period ending March 2022.

4 responses from the Newspage community

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Debbie Porter
Managing Director at Destination Digital Marketing
It's not surprising to see an increasing number of insolvencies, at both the personal and company level. As a nation we've been through one turmoil after another in the past three years. We now have a 9.68% hike in the national minimum wage and a Corporation Tax hike from 19% to 25% as of this month. Small businesses, which make up the majority of all businesses that are trading in the UK, cannot keep accepting increases in costs across the board like this and still remain profitable. All businesses are in business to be profitable, so once this is taken away, inevitably businesses will fold. People then lose their jobs and join the unemployment line, getting into debt to try and keep up with the cost of living in the meantime. Much is said of the cost-of-living crisis, so the government's focus on macroeconomics and refilling the coffers through taxation seems really out of step with much of the population's lived experience.
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Ian Hepworth
Director at Funding Solutions UK Limited
Increasing insolvencies are sadly a sign of the times. Macroeconomic headwinds continue to bite. The withdrawal of government support from businesses, higher interest rates, stubbornly high inflation, wage demands and supply chain disruption have proved too much for many firms, and they are folding as a result.
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Mark Grant
Business Finance Adviser at The Business Finance Branch
Every business that fails is a tragedy for the owners and staff involved. There is encouragement to be taken from the insolvency data compared to 2022 and earlier years in that the rate of failure is not increasing as it had been forecast to do. We are seeing many clients proactively getting ahead of their liabilities where they can and lenders are willing to support viable cases. The future is brighter than had been forecast for many.
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Bradley Lay
Founder at Peak Capital Group
This latest insolvency data paints a bleak and ominous picture of the economic landscape. These numbers reveal a concerning reality for businesses and individuals alike. The rise in registered company insolvencies, compulsory liquidations and Creditors’ Voluntary Liquidations all points towards a downward spiral that seems unstoppable. The number of bankruptcies filed by individuals has also increased, with Debt Relief Orders (DROs) skyrocketing by a staggering 35%. The only glimmer of hope is the decrease in the number of Individual Voluntary Arrangements (IVAs), which may be due to a lack of options available for people in dire financial straits. The future feels bleak and the economic climate is only going to get worse. During the past few years we have seen extreme uncertainty and instability in the UK economy, and it seems that this is a trend set to continue for several more years.