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June 2023 insolvency data - reaction

ended 18. July 2023

This morning, The Insolvency Service published the latest company and individual insolvency data for June. It showed that the number of registered company insolvencies in June 2023 was 2,163, 27% higher than in the same month in the previous year (1,698 in June 2022). UK newswire, Newspage, asked business finance experts for their views.

2 responses from the Newspage community

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Mark Grant
Business Finance Adviser at The Business Finance Branch
This data makes for extremely grim reading. Total company insolvencies in June were 27% higher than the same month last year and, for perspective, approximately 50% higher than in June 2019. At 260, compulsory liquidations saw a 77% rise year on year, partly attributed to HMRC winding-up petitions, which is a trend that will likely grow. This worrying data follows last week's Credit Conditions survey from the Bank of England that forecast even tougher conditions for small businesses as they try to ride out cost increases from inflation and interest rate rises. For many businesses, forecasting cash flow and getting ahead of problems will see them through, and wherever viable we are trying to help clients do just this. But some companies, sadly, may not come out the other side.
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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
This is catastrophic data, with a rise in company insolvencies of over a quarter compared to the same month last year. This is the result of stale government policies that have nailed the coffin of many British businesses closed. Sky-high taxes on companies and jobs has created an environment that sees businesses lack the ambition to recruit and expand. Couple this with a total lack of imagination in Government on how to stimulate an ailing economy and you have a perfect storm for businesses to fail.