Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Companies going bust rises by a fifth compared to same period last year

by March 15, 2024
March 15, 2024
Companies going bust rises by a fifth compared to same period last year

The latest figures from the Insolvency Service reveal a concerning trend in business insolvencies, with a notable increase of nearly a fifth compared to the same period last year.

In February, a total of 2,102 businesses faced insolvency, marking a significant rise from the 1,801 recorded in February of the previous year.

While the data did not provide specific sectoral breakdowns for February, recent trends have shown that insolvencies are predominantly concentrated in sectors such as construction, retail, and manufacturing.

This surge in insolvencies coincides with the Bank of England’s efforts to combat inflation by gradually raising interest rates. Since November 2021, the base rate has been increased from a historic low of 0.1 percent to 5.25 percent by August 2023, the highest level in 16 years.

Despite expectations of stability in interest rates at the upcoming meeting of the Bank’s monetary policy committee, financial markets anticipate a potential rate cut in June.

It’s worth noting that government support schemes introduced during the Covid-19 pandemic, along with legal protections for financially affected companies, helped keep insolvency figures relatively low. However, these temporary measures were lifted in April 2022, exposing businesses to increased financial pressures.

Sarah O’Toole, restructuring partner at PwC UK, highlighted the ongoing challenges faced by businesses, including supply chain disruptions, cautious lending practices, and the impact of higher interest rates. She noted that the rise in insolvencies in February was expected, particularly following poor trading performances during the holiday season.

The uptick in insolvencies raises concerns about potential job losses, with unemployment expected to increase as affected businesses lay off staff. Despite this worrying trend, there are indications of economic recovery, including modest GDP growth and a significant rebound in retail sales in January, signaling a potential end to the recent recession.

Read more:
Companies going bust rises by a fifth compared to same period last year

0
FacebookTwitterGoogle +Pinterest
previous post
20,000 people off work in the UK every month with mental ill health
next post
Oil & Gas Equipment & Services ETF Resumes its Uptrend

You may also like

Meta sued by 33 US states over claims...

October 25, 2023

Sky Zero Footprint Fund returns in 2025 with...

March 1, 2025

Casement Park Redevelopment Project Suffers Another Setback

December 20, 2023

Hunt refutes Labour’s claims of fiscal ‘black hole’

August 4, 2024

Legal and Ethical Considerations: Safeguarding Employee Rights in...

December 21, 2023

British Steel’s Chinese owner seeks huge government aid...

October 3, 2022

driveJohnson’s reaches 600 driving instructors across the UK

November 10, 2023

New HMRC data raises UK hopes of end...

December 5, 2022

Strikes take their toll on multiple sectors

August 26, 2022

Price rises inevitable if UK small businesses to survive, new analysis...

May 26, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How Staff Can Strengthen HIPAA Compliance and Security

      June 29, 2025
    • Lotus denies plans to close Hethel factory amid US expansion talks

      June 29, 2025
    • Top university degrees lose sway as tech employers prioritise job-ready skills

      June 29, 2025
    • Government urges supermarkets to make healthy food more appealing in bid to tackle obesity crisis

      June 29, 2025
    • Senate Republicans ram Trump’s ‘big, beautiful bill’ through key test vote

      June 29, 2025
    • Chief Justice Roberts sounds alarm on dangerous rhetoric aimed at judges from politicians

      June 29, 2025

    Categories

    • Business (8,334)
    • Investing (2,081)
    • Politics (15,853)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved