Official figures from the Insolvency Service have revealed that 2,163 insolvencies happened in June which is a 27% rise compared to the same period last years.
The vast amount of the insolvencies were voluntary liquidations and in June there was 11,759 which is a 21% rise year-on-year.
A surge in winding up petitions produced by HMRC shows that liquidations in June soared by 77% and there was 130 administrations in the month.
Sarah Rayment, managing director and co-head of global restructuring at Kroll, said: “Ultimately, I don’t think this comes as a surprise. Many companies emerged out of the pandemic already over leveraged.
“They are now managing higher borrowing costs and cost inflation, alongside wider economic factors.
“It’s inevitable not all will survive, especially those in consumer facing sectors.”
Samuel Mather-Holgate, Independent Financial Advisor at Mather and Murray Financial said, “This is catastrophic data, with a rise in company insolvencies of over a quarter compared to the same month last year.
“This is the result of stale government policies that have nailed the coffin of many British businesses closed.
“Sky-high taxes on companies and jobs has created an environment that sees businesses lack the ambition to recruit and expand. Couple this with a total lack of imagination in Government on how to stimulate an ailing economy and you have a perfect storm for businesses to fail.”
Mark Grant, Business Finance Adviser at The Business Finance Branch said, “This data makes for extremely grim reading.
“Total company insolvencies in June were 27% higher than the same month last year and, for perspective, approximately 50% higher than in June 2019.
“At 260, compulsory liquidations saw a 77% rise year on year, partly attributed to HMRC winding-up petitions, which is a trend that will likely grow.
“This worrying data follows last week’s Credit Conditions survey from the Bank of England that forecast even tougher conditions for small businesses as they try to ride out cost increases from inflation and interest rate rises.
“For many businesses, forecasting cash flow and getting ahead of problems will see them through, and wherever viable we are trying to help clients do just this. But some companies, sadly, may not come out the other side.”