LONDON (Reuters) -More companies suffered insolvency last year in England and Wales than any time since 2009, government figures showed on Tuesday, reflecting the end of coronavirus pandemic support that helped many smaller businesses stay afloat.
Total insolvencies rose to 22,109 in 2022, their highest since the global financial crisis and up by 57% from a year earlier.
The increase was driven by the commonest form of insolvency, known as creditors’ voluntary liquidations (CVLs), which had dropped sharply in 2020 and early 2021 when the government provided COVID support loans to many businesses.
CVLs hit their highest number since records began in 1960, the government’s Insolvency Service said. Compulsory liquidations were still below their pre-pandemic level last year.
The increase in the number of companies falling into difficulty partly reflects the higher number of companies overall.
The rate of company liquidations rose to 49.5 per 10,000 active companies in 2022, up from 32.9 in 2021 and its highest since 2015, but only around half the level seen in 2009.
(Reporting by David Milliken, Editing by Kylie MacLellan)
