December 2021 saw the total number of insolvencies increase by 22% compared to November. A total of 2,469 companies become insolvent, an increase of 22% compared to last month (November) and a 39% increase compared to December 2020.
This increase in the overall number of insolvencies undoubtedly reflects the particular circumstances resulting from the Covid-19 pandemic and resulting lockdown. Many distressed businesses have managed to keep afloat by making use of the high level of government support available, and many may well have opted to file for an extension with Companies House. However, as government schemes have now come to an end and cash reserves become scarce, we may continue to see the overall number of business failures increase through 2022.
The total number of UK company insolvencies for the year 2021 rose to 19,827. This represents a 1% increase compared to the same period in 2020; and, the number of insolvencies has been steadily rising since August 21.