Warning on 'false dawn' in corporate insolvencies

A surprise fall in the number of insolvent businesses in England and Wales should be viewed with caution and is far more likely to be a ‘false dawn’ than an indication of economic recovery, according to the Eastern branch of R3. 

Insolvency Service figures show that corporate insolvencies fell by 15 per cent in September to 1,967 compared to August's total of 2,319, but still stand 16 per cent higher than in September last year.  They are also over a third higher than in September 2021. 

R3 Eastern chair Hayley Watson (photo, right) associate director at McTear Williams & Wood, said: “Despite the monthly fall in insolvencies, businesses are still struggling. The September 2023 numbers are the highest we’ve seen for this month in four years as a combination of economic issues, director fatigue and the post-Covid insolvency lag see a rising amount of firms turn to corporate insolvency processes to resolve their financial issues." She added: “Our message to company directors is simple: if you’re worried about your business, seek advice…”