Month-on-month in insolvencies in November

The total of 1,966 insolvencies is 12% lower than November 2023 but remains significantly higher than levels seen during the pandemic and between 2014 and 2019. This figure comprises 1,565 creditors’ voluntary liquidations (CVLs), 254 compulsory liquidations (CVAs) and 132 administrations.

The remainder consisted of 14 company voluntary arrangements and one receivership.

Between 1 December 2023 and 30 November 2024, one in 189 companies – at a rate of 52.9 per 10,000 companies – entered insolvency, down from 57.3 per 10,000 companies in the 12 months ending 30 November 2023.

R3 president Tim Cooper commented: “Fallout from the budget and ongoing cost issues have driven corporate insolvencies this month. After years of rising outgoings and falling margins, businesses are facing further increases in wages following the Chancellor’s announcement, which could be an expense too far for some firms.

“Members are telling us that enquiries have increased over the last month, as firms seek to restructure or have early conversations about their financial concerns or insolvency options ahead of the new year.

“This activity won’t be reflected in the current set of insolvency statistics, but it provides insight into the mood, challenges and concerns of the business community as we end another difficult year.

“Retailers saw a drop in sales in November, though many had anticipated this as consumers curtailed spending ahead of Black Friday, while leisure and hospitality businesses saw increased consumer spending.

“Management teams across all three sectors hope that Black Friday has initiated the Christmas shopping and spending period, and that it will be busy, as many firms in these industries have had a challenging year.”

Individual insolvencies in England and Wales also increased, rising 12% from last month to 10,012 – 25% higher than in November 2023.

This figure includes 5,730 individual voluntary arrangements (IVAs) and 3,693 debt relief orders (DROs), with the remaining 589 being bankruptcies.

Monthly DRO numbers have reached record highs since April this year, following the removal of the £90 administration fee from 6 April 2024.

In the 12 months to November’s end, one in 422 adults in England and Wales – 23.7 per 10,000 adults – entered insolvency, higher than the previous year’s rate of 21.8 per 10,000 adults (one in 459 people).

Additionally, 7,626 Breathing Space registrations occurred in November – two per cent higher than November 2023.

Cooper noted: “Cost-of-living issues continue to drive demand for personal insolvency support. People who were struggling but managing are now turning to insolvency processes in increasing numbers as ongoing rising prices have pushed their expenses to unmanageable levels.

“With Christmas approaching, many are looking to reduce spending on both essentials and luxury items as they prepare for the festive season and its associated costs.”

In Scotland, 114 company insolvencies occurred in November 2024 – five per cent higher than November 2023. This comprised 55 CVLs, 54 compulsory liquidations and five administrations.

Northern Ireland saw a decrease in company insolvencies, with 16 recorded – 47% lower than November last year. This included 10 CVLs, three compulsory liquidations, two CVAs and one administration.

Individual insolvencies in Northern Ireland rose 30% year-on-year to 144 in November 2024, consisting of 78 IVAs, 41 bankruptcies and 25 DROs.