Fall In UK Company Insolvencies In Twelve Months To March 2021

Many businesses have struggled during the pandemic with some regrettably ceasing to trade no doubt for a variety of reasons. However, according to a government website, the number of companies becoming insolvent in the twelve month to 31st March 2021 dropped in comparison to the same period in the previous year but this was, in part, as a result of a drop in company insolvency procedures.

It is interesting to read that, in the twelve months to 31st March 2021, in England and Wales, 1 in 396 active companies unfortunately went into liquidation. That equates to 25.3 per 10,000 active companies. Between 1st April 2019 and 31st March 2020, 40.5 per 10,000 active companies went into liquidation. That is a fall of 15.2 per 10,000 active companies.

In Scotland, the total number of liquidations in the twelve months to 31st March 2021 amounted to 20.9 per 10,000 active companies. In the twelve months to 31st March 2020 the total number of liquidations amounted to 44.9 per 10,000 active companies. That is a fall of 24 per 10,000 active companies.

In Northern Ireland, the total number of liquidations in the twelve months to 31st March 2021 amounted to 10.7 per 10,000 active companies. In the previous twelve months, the total number of liquidations amounted to 53.7 per 10,000 active companies. That is a fall of 43 per 10,000 active companies.

In England and Wales, in the first quarter of 2021, there amounted to 2,384 companies that were made insolvent. That figure was 38% less than the number of companies made insolvent in the first quarter of 2020. Breaking this figure down, there were 108 compulsory liquidations, 2,047 creditors’ voluntary liquidations, 192 administrations, 37 company voluntary arrangements and 0 receiverships.

It will be interesting to see how many company insolvencies there are in the UK in the coming months. There are no doubt many businesses that are struggling to survive in the current economic climate partially due to the pandemic caused by the coronavirus. We will keep our readers updated in this respect.

Mortgage Advice Compare Mortgage Lenders