Good news for businesses
The underlying number of company insolvencies in England and Wales has fallen to the lowest quarterly level in 17-years, according to latest statistics released by the Insolvency Service.
However, the total number of companies entering liquidation increased in quarter two but this was primarily caused by 1,131 connected personal service companies entering liquidation on the same date following changes to claimable expenses rules.
When the personal service company’s figures are removed the total number of liquidations fell 16 per cent from the previous quarter from 4,038 to 3,416 and is down 3.5 per cent year on year.
John Cullen of accountancy firm Menzies told City Am: “This reflects the relatively stable period the economy is going through, with modest growth and low interest rates contributing to the statistics we see.”
“Although the upward pressure on the interest rate has, for now, eased, at some point interest rate hikes will impact both businesses and individuals and the number of corporate insolvencies is expected to climb.”