The number of company insolvencies in England and Wales reached the highest level for 13 years in this year’s second quarter, official figures show.
The Office for National Statistics (ONS) recorded a total of 5,629 business failures between April and June 2009. This was the highest quarterly figure since the third quarter of 2009, but was still below the peak of 6,943 reached in the last quarter of 2008 during the global financial crisis.
Construction, wholesale and retail trade, and accommodation and food services accounted for just over half of all business insolvencies in England and Wales in the first half of 2022.
There was a drop in insolvencies in 2020, when businesses were given government support to get through the Covid-19 pandemic, but they have risen since 2021.
Across the UK, more than 1 in 10 businesses reported a moderate-to-severe risk of insolvency in August 2022.
The figures reflect a sharp increase in costs, particularly from high energy bills, which has put significant pressure on many firms after two years of disruption related to the pandemic.
Over a fifth (22%) of UK businesses said in August that energy prices were their main concern, up from 15% in late February. In firms with 10 to 49 employees, this figure was 30%.
