Insolvency Statistic: What is Really Happening to the UK Economy
It is clear the current financial climate in the UK is both turbulent and unpredictable. I am sure you have already heard anecdotal evidence of businesses struggling in 2023. This is heightened by many media outlets creating a rather downbeat feel to the start of the year.
The Government has recently released statistics for November 2022 that seem to confirm what many of us already suspected. Here are a few of the findings:
1595 businesses have entered into creditors’ voluntary liquidations (CVL)
This is one of the most disturbing statistics released in the reports. It shows a 5% increase in figures from November 2021 and a huge increase of over 50% in November 2019 figures.
290 businesses were forced into compulsory liquidations
On the face of it this does not seem to be a particularly high number but when compared to previous years it tells a different story. This figure is 437% higher than in November 2021.
Administrations were recorded at 134
Similar to the compulsory liquidation figures, in isolation, this does not seem to be particularly high, but if you compare this to November 2021 you will see this represents an increase of 44%.
It is clear from these figures that the UK economy is struggling but there is some good news. A recent report showed in the same month (November 2022) the UK economy actually grew by 0.1%. This goes against a Reuters prediction that the economy would contract by 0.2% in November 2022. Technically this means that the UK economy is not in a recession. A recession is defined as 2 consecutive quarters of contractions. However, for many businesses and people in the UK, this will be received with little joy, as for many it feels as though we are deep into a recession.
In these challenging times, it’s crucial to stay informed and prepared. At Harvey Sutton, we’re committed to providing you with the latest insights and opportunities in the insolvency and restructuring sector. Despite the economic turbulence, there are still avenues for growth and recovery. Visit our website at www.harveysutton.co.uk to explore job opportunities, industry news, and more. Remember, even in the midst of a storm, there are always ways to navigate towards calmer waters. Stay resilient, stay informed, and stay connected with Harvey Sutton.