The latest statistics have been released by the Insolvency Service, containing data on both company insolvencies and individual insolvencies, from October to December 2018.
It is conceivable that the issues created by Brexit and the associated economic uncertainty are evidenced within these latest figures. This instability may have had a financial effect on both businesses and households and be a factor in the increase of insolvencies.
Here is a brief summary of the data:
Companies in 2018
- The underlying number of company insolvencies increased in 2018 to 16,090 – the highest level since 2014.
- All types of company insolvency increased in 2018 compared with 2017, with the exception of administrative receivership.
- The estimated underlying liquidation rate in 2018 was 1 company liquidation per 249 of active companies, up from 1 in 264 in 2017.
People in 2018
- Total insolvencies increased for the third consecutive year to 115,299 – the highest it’s been since 2011.
- This was primarily driven by increases in individual voluntary arrangements (IVAs), which reached their highest annual total on record.
- 1 in 401 adults became insolvent in 2018, up from 1 in 466 in 2017.
Latest quarter (Q4 2018)
- Company insolvencies increased due to a bulk insolvency event; excluding these bulk insolvencies, the underlying number of company insolvencies in Q4 2018 decreased from the previous quarter.
- The construction industry had the highest number of insolvencies in the 12 months ending Q4 2018, followed by the wholesale and retail trade & repair of vehicles industrial grouping.
- Total individual insolvencies increased to their highest level since Q2 2010, due to IVAs rising to a record-high quarterly level.
You can see the full release of Insolvency statistics set out in various formats and tables here.
Posted on February 7, 2019