December 2022 saw the total number of insolvencies decrease by 5% compared to November 2022. A total of 2,535 companies became insolvent, an increase of 3% compared to December 2021.
This number of insolvencies suggests that while the current economic challenges are continuing to hit businesses hard and are pushing an increasing number into insolvency, the insolvency trends are still uneven.
In recent months, companies have been affected by multiple economic issues, including the end of temporary legislation and a lack of post-covid support, which have impacted all parts of the economy and supply chain, resulting in more directors choosing to close their businesses.
The total number of UK company insolvencies for 2022 rose to 27,219. This number represents a 37% increase compared to the same period in 2021 and a 38% increase compared to 2020.