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

Michelle Donelan: Google AI training programme supports UK...

August 3, 2023

Q&A with State Representative Ron Eugene Reynolds

August 7, 2024

Miliband sacks Dame Mary Archer from net zero...

May 3, 2025

It’s the experience that counts – ways to...

March 11, 2024

PACE – the supply chain of the future

January 14, 2025

Gambling rule changes cost Entain £40m in lost...

March 7, 2024

Nine in ten manufacturing SMEs report skills gaps...

April 2, 2025

UK Government has lost £21bn in pandemic fraud,...

March 31, 2023

Workplace flexibility is essential to offset Rishi Sunak’s...

February 13, 2023

Introduction of €7 visa-waiver forms for travellers to...

August 11, 2022

Michelle Donelan: Google AI training programme supports UK...

August 3, 2023

Q&A with State Representative Ron Eugene Reynolds

August 7, 2024

Miliband sacks Dame Mary Archer from net zero...

May 3, 2025

It’s the experience that counts – ways to...

March 11, 2024

PACE – the supply chain of the future

January 14, 2025

Gambling rule changes cost Entain £40m in lost...

March 7, 2024

Nine in ten manufacturing SMEs report skills gaps...

April 2, 2025

UK Government has lost £21bn in pandemic fraud,...

March 31, 2023

Workplace flexibility is essential to offset Rishi Sunak’s...

February 13, 2023

Introduction of €7 visa-waiver forms for travellers to...

August 11, 2022

    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

    • Trump and Netanyahu celebrate ‘historic victory’ against Iran, eye future Middle East peace

      July 8, 2025
    • Medical groups urge Kennedy, FDA to reexamine broad approval of abortion drugs

      July 8, 2025
    • LIZ PEEK: Musk throws his own party because he’s mad at President Trump

      July 8, 2025
    • Digital divide widens as 74% of regional SMEs miss out on vital support

      July 8, 2025
    • Apple appeals €500m EU fine over App Store restrictions, accusing Commission of overreach

      July 8, 2025
    • UK steel firms on edge as US tariff deadline looms amid incomplete deal

      July 8, 2025

    Categories

    • Business (8,416)
    • Investing (2,105)
    • Politics (15,961)
    • Stocks (3,192)
    • 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