In 2022, company insolvencies were at 22,109 – the highest since 2009 – and 57% higher than the previous year.

The number of company voluntary liquidations (CVLs) in 2022 was the highest annual number in the time series since records began in 1960. CVLs make up the largest percentage of company insolvencies. In 2022, CVLs increased by 49% in 2021 to the highest annual number since the start of the time series in 1960. They accounted for 85% of all insolvencies.

The other types of all company insolvencies were compulsory liquidations (9%), administrations (6%) and CV arrangements (1%).

Among the industries with the highest number of insolvencies in 2022 were construction, retail trade, and accommodation and food service.

Oliver Collinge from insolvency practitioners PKF GM said the rise in insolvency numbers “is not surprising” due to the cost-of-living crisis in the UK. “Many distressed businesses managed to keep afloat through Covid by using the high level of government support available,” he said.

Quarterly insolvency statistics for October to December (Q4) 2022 show that there were 5,995 company insolvencies registered in Q4 2022, which was the highest total since Q4 2008.

Collinge said the current headwinds will rock even some better-performing businesses in 2023, not only those “in survival mode”.

He also said the IMF predicts that the UK will be the “worst performing big economy in 2023” and that we should expect “heightened levels of business failures” for some time to come.

“It’s critical businesses act early if they are struggling now or think cashflow may be squeezed in the coming months,” Collinge said. “The earlier they act, the more options they’ll have to secure the business’s long-term survival.”