R3 in the North West responds to the 2024 annual insolvency statistics for England and Wales

• There were 23,872 seasonally adjusted corporate insolvencies in 2024. This was a
decrease of 5.1% from 2023’s figure of 25,163, and an increase of 7.9% on 2022’s figure
of 22,129.
• There were 117,947 seasonally adjusted personal insolvencies in 2024. This was an
increase of 14% on 2023’s figure of 103,434, and a slight fall of 0.7% on 2022’s figure of
118,752.

Fran Henshaw, North West Chair of R3, the UK’s insolvency and restructuring trade body, says:
“Although corporate insolvencies fell in 2024 compared to 2023, they remain higher than in
2022 and well above pre-pandemic levels. Compulsory liquidation levels have increased
compared to last year as creditors pursue the debts they are owed in an effort to balance their
own books, and while Creditors’ Voluntary Liquidation numbers have declined compared to
2023, they are higher than in 2022 and the years before and during the pandemic as a high
volume of directors close their businesses now while the decision to do so still rests in their
hands.

“2024’s insolvencies have been driven by another year of high costs and a series of political,
economic and geopolitical events which have taken a toll on businesses in England and Wales.
Members have told us that the Election, the Budget and the conflict in the Middle East have all
led to increases in enquiries and requests for advice and support, and this reflects how these
unexpected shocks can be and have been the tipping point for many businesses after years of
battling harsh trading conditions.

“From a sectoral perspective, retail, hospitality and construction have all suffered this year. All
three of these industries have been hit hard by continued rises in expenses, while retail and
hospitality have been affected by cautious consumer spending over the past 12 months, and
construction by bad weather and the delay to project starts and commissions caused by the
General Election.

“These sectors are going to be some of the most affected by the Chancellor’s planned increases
in Minimum Wage, Living Wage and Employers’ National Insurance Contributions. Although it’s
likely we won’t see the impact of these on corporate insolvency fi