Insolvency figures for April have shown a marked increase, says South and Thames Valley region of R3, the trade body for restructuring and insolvency professionals.
New statistics for England and Wales show corporate insolvencies were up almost 20% compared with both March 2024, and with April last year.
Data from The Insolvency Service also showed an increase in personal insolvencies over March by almost 10%, and nearly 5% over last year.
Neil Stewart, chairman of R3’s Southern and Thames Valley region, said: “The last year and the last quarter have seen corporate insolvency numbers reach a level not seen since the previous recession in 2008-09.
“The UK’s modest recession during the last two quarters of 2023 was a contributing factor, but it was short lived with a better than expected growth in GDP of 0.6% between January and March – which has largely cancelled out the recession’s effects.
“Against this backdrop, inflation has fallen to 2.3% and the Bank of England have held interest rates for a further month, with market speculation abundant as to whether and when a cut is on the cards.”
Neil, who is regional associate director at insolvency litigation financing company Manolete Partners, added: “Despite the pressures, the mood among consumers is becoming more positive.
“People seem more optimistic about their personal finances over the next year, although the future of the economy, the cost of living and concerns around job security remain key areas of concern.
“While the picture seems to be more positive for businesses and individuals, and consumers seem more optimistic about the weeks and months ahead, people still need to keep a close eye on their personal and business finances, and seek advice as soon as they become concerned that they are having problems or could have them in the near future.”
