Business insolvency in England and Wales jumps in August – Times of India

by The Technical Blogs


LONDON: Company insolvencies in England and Wales in August rose 19% year on year to the third highest level since monthly record started in January 2019, as firms grapple with rising costs and uncertain economic outlook, government data showed on Friday.
The Insolvency Service, a government agency, reported 2,308 corporate insolvencies last month, up from 1,728 in July.
Companies were mostly declared insolvent through creditors’ voluntary liquidations, in which a firms’ directors agree to wind up the business without a formal court order.
The rate of businesses falling into insolvency fell sharply at the start of the Covid-19 pandemic, thanks to government support programmes and lockdowns slowing the progress of courts handling insolvency cases.
The figures also showed a 45% increase in compulsory liquidations, partly due to more requests from authorities to recover funds from businesses that were unable to pay their tax bill.
Companies’ financing costs have surged as the Bank of England, which is expected to raise interest rates for the 15th meeting in a row since December 2021, battles to tame persistent inflation.
Insolvencies for individuals fell 11% on an annual basis in August, which the Insolvency Service said was due to a decline in the number of individual voluntary arrangements.
Breathing space applications – which hold off creditor action for 60 days so people in debt can reorganise their finances – jumped 19% on a year ago.


Source link

Related Posts

Leave a Comment

Recent Posts

Pigeons swarm Las Vegas neighborhood, nesting at church Study finds adult female elk are badass and can’t be... Vacancy: some more elephants needed in the bush THE TECHNICAL BLOGS

Our Policies

Userful Links

Shop Stores

Copyright @2020  All Right Reserved - Designed and Developed by DSF SEO COMPANY